IPO Mania - Can lithium help?
Posted Jan 17, 2008 6:16 UTC (Thu) by njs
In reply to: IPO Mania - Can lithium help?
Parent article: Ten-year timeline, part 2: the bubble days
No need to get hostile, we're all friends here; and I think you're underestimating Nathan a bit.
He's not talking about people investing individually like your investment club (though in the crazy days of the bubble, a lot of inexperienced people *were* making deeply unwise investments with their personal savings. Not in venture funds per se -- though there was the publically traded and apparently disastrous "MeVC" -- but they still lost real money because they were given awful advice and had no way to realize it).
He's mostly talking about things like retirement funds, which play a huge role in the investment market as a whole, though individual investors have no reason to be particularly familiar with them. CalPERS, for instance, has ~$240 billion under management on behalf of California's civil servants, and the managers of funds like these *do* invest in VCs. Again, just looking at CalPERS's webpage, they have about ~$20 billion in "private equity", which means VC and VC-like investment. (Note that there is only ~$236 billion of US VC investment total.) And pretty much every government body has a similar fund, also universities, large corporations, etc. I'm not finding hard data on retirement funds split out from other sources of VC investment, but basically it looks like the bulk of VC investment -- >50% -- comes from large institutional investors (not rich individuals), and a large portion of these investors are managing money from pensions, or other salutory sources such as non-profit and university endowments.
The bubble scammers ending up taking some rich people's toys, but they stole a huge amount from the general public too, one way or another. Even your claim that small individual investors have recovered from the crash doesn't mean much unless you can tell us where they would be had they skipped the bubble and then invested just the same.
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