The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
In May 2012 the Kauffman Foundation released a study on actual market performance of Venture Capital Funds. The report, We Have Met the Enemy ... And He is Us, "a comprehensive analysis of the Kauffman Foundation's more than 20 years of experience investing in nearly 100 VC funds." The finding isn't pretty:
... the Limited Partner investment model is broken.
and Kauffman would have done better to invest their money in the Russell 2000 index of small-cap stocks.
Several reasons for this, the most important one is the General Partners (GP) of the fund are in the business of raising money and collecting management fees. How well a GP manages the investments isn't in the picture.
Which is weird but there it is.
I doubt the average Chinese wealth manager is any better than their American counterpart. Lemming-like behavior is a well known property of the US investment markets thus I am confident it's a property of the PRC's investment markets too. Some proof lies in the reports China has entire cities with houses, apartments, stores, etc. 100% purchased, as an "investment," and ~100% unpopulated.
This diary also provides a bit of evidence for something I've been thinking for some time: the world is awash in cash, most of it deployed and/or locked into economically useless fol-de-rol.
If so, cannot one start to seriously question, and examine, the Pop idea:
cash = wealth
She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
the world is awash in cash, most of it deployed and/or locked into economically useless fol-de-rol.
exactly... hoarding fertiliser when the fields need it, trying to squeeze oil out of seabeds when we could grow it, etc etc.
my shed is bigger than yours, my rig taller, sigh.
they love money so much they're choking it to death by clutching onto it so hard.
suffocating their very own golden goose with greed
'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
by Luis de Sousa - Sep 13 30 comments
by Frank Schnittger - Sep 18 6 comments
by ARGeezer - Sep 7 41 comments
by Frank Schnittger - Sep 8 70 comments
by Frank Schnittger - Sep 4 18 comments
by Bernard - Aug 27 5 comments
by Frank Schnittger - Aug 30 14 comments
by Frank Schnittger - Sep 186 comments
by Luis de Sousa - Sep 1330 comments
by Frank Schnittger - Sep 870 comments
by ARGeezer - Sep 741 comments
by Frank Schnittger - Sep 418 comments
by Frank Schnittger - Aug 3014 comments
by Bernard - Aug 275 comments
by gmoke - Aug 27