VC’s and Silicon Valley are using use as pawns

I had a good laugh this morning. I was a business insider piece by a guy by the name Adam Rogers. He calls it the dirty little secret that could bring down big tech. And again, anybody who’s been listening to this program, you’ve known all this stuff. And again, this guy is almost like the light bulb went out on over his head. And quite frankly, I wish the light bulb would go on over other investors’ heads on a regular basis. We’ve explained this. Venture capital. Silicon Valley need you to be a greater fool. They need you to do stupid things with your money. They need you to buy into hype cycles, FOMO, all of this nonsense to keep their business model alive. I lamented the fact when they decided to repeal Glass-Steagall and put together commercial banks. and investment banks. And then we had the, all the dot com collapse at that point in time. And then what happened? Then what happened after that? Then we had, you know, Sarbanes-Oxley. Oh no, all these bad firms, look what they did. We had thousands of pages of rules and regulations and it changed Wall Street. As bad as many of the companies were during the whole dot com collapse. There was a lot of God awful companies. At least investors at least investors could have got in close to the bottom. Now, granted, certain companies should do private placements first and bridge financing, but you could get in close to the bottom. That changed, that changed. And we had an entirely new industry that popped up in California and in and around Silicon Valley, venture capital. And venture capitalists, venture capitalists, they don’t care. They don’t give a rats you know what about whether or not a company makes it or not. All they’re trying to do is to get out. They finance these companies and they want to get out as quickly as possible. How do they get out? That’s on you. That’s, that’s when you decide that you’re going to be one of the greater fools out there. and listen to your schlock broker at one of the big brokerage firms and buy into the IPO after this company has been laddered up for an extended period of time. I think the investment that, what was that? Was it benchmark, the original one for Uber? I think they put in 12 million, I think. And I think that they made over, I don’t know, $2.8 billion, maybe more on that investment. And again, I’d like you to check, I’d like you to check for yourself, to take a look at Uber’s stock price since it went public. You’ve lost. The company still has yet to make any money whatsoever. Their business model was a complete fugazi from the beginning. It’s just let’s dominate the industry by subsidizing people’s taxi cab rides. It’s basically what they did. Just subsidizing people’s rides. That’s how they gained their market share. It’s funny thing is this Adam Rogers, he came to the realization, came to the realization about the, how venture capital works. When he had a conversation with one of the people over at Lyft, which is the other ride sharing service, talking about autonomous driving and basically Lyft TOLA, the only way that we’re ever gonna make money is if we have robots drive cars. That’s it. The only way that they’re ever going to make money based upon this model is if they have robots drive cars. Did they tell you that when they went public? No, no. Again, but this is nothing new. It’s funny. This is how these hype cycles, how things work all the time. You get real smart people involved at a very, really low level, laddering the thing up for a period of time, dominating a certain market, creating a hype around their market, actually using marketing people, utilizing the business media out there to hype these companies up. And then you get Wall Street to say, hey, sure, we’ll take those companies public. Again, this goes back. You talk about the Silicon Valley bank collapse. And we pointed this out, nobody else has pointed this out. Isn’t it interesting that all these big Wall Street firms, these big Wall Street firms and their stock analysts, their banking analysts, didn’t recognize, which was as plain as day, that Silicon Valley Bank was a mess. Was an absolute mess in regards to its loan portfolio and what they were doing. And the reason why they didn’t come out and let anybody know is because they love Silicon Valley Bank. Silicon Valley Bank had all the connections in Silicon Valley with the venture capitalists. They managed the money for all these venture capitalists and they wanted, Wall Street wanted to do those deals. You’re not gonna tick off a bank that is you know, sending your contacts and deal flow, you’re not gonna be honest about that because again, you want those deals, you wanna take these companies public. That’s their modus operandi. They don’t give a crap about you. But you think that these investment bankers, you think these investment bankers at these firms, you don’t think that they know, you don’t think that they’re well aware that they’re taking literal dog shit public? I mean, they knew it back in the 1990s. They found all of the correspondence in the emails. They knew it in the lead up to the Great Recession, all the mortgage-backed securities that they were putting together, putting in all of these garbage loans, terrible loans into these things, getting S&P and Moody’s to slap a AAA rating on them and sell them. You didn’t think that they knew? Of course they knew. Of course they knew. And again, this goes back to what I try to teach here on the program. At some point in time, people, you’re gonna have to start seeing through this. You’re gonna have to start using your head. You know, I’ve talked about this before. We used to be able to get our hands on IPOs and bring them to our clients, part of the selling group. And that’s not gonna happen anymore because… we do the right thing by our clients. And when they go public and they’re up on day one, we sell. We sell. I know, I hope you’re gonna get initial pop in that thing. I’m out. Get the hell out. Okay, that is a short-term trading vehicle. You get in and you get out. It’s like knowing almost that, you know, which horses are gonna win at the track. I’m out, I’m done. No, they don’t want you to do that. They want you to hold these things for a period of time because they’ve got to get their insiders out and they have to keep the share price up for a certain period of time to do that. But even if it comes back down, the insiders are getting out at a massive, massive profit. And again, you end up holding the bag. You know, you’re the last person standing in this perverse game of, if you will, musical chairs. Music stops. Music stops and the average investor gets burned on these things again and again and again, but you don’t have to. Okay? Yeah, I hate the word victim. You don’t have to be a victim. If you use your head and you understand that investing is a long-term proposition and that everything in life that has meaning, value, and worth involves work, time, and effort. you’re not going to succumb to their sales pitches and their nonsense. Don’t. Be smart. We’re here to help you. As I said, get to our website at Watchdogonwallstreet.com. Sign up for our personal CFO program. Get a consultation. And that’s what we’re here for, people. We’re here to help you. Watchdogonwallstreet.com.