• I'm not sure a massive exogenous shock tells you much about whether unicorns were over valued before. Many companies will fail across the spectrum due to a factor that most investors simply don't predict for. How many companies have 3-6 months worth of overhead costs in cash reserves?

  • No one has a rainy day fund any more. I’m amazed how hand to mouth businesses are in terms of cash.
    Is it because interest rates are low so any cash is literally sitting in an account depreciating in real value?
    I’m sure it’s not so simple.

  • A big shock tells you a lot about whether they are overvalued. Their valuations are reliant on continual growth and the shock shows that this isn't possible.

    They're highly leveraged, debt making monsters and if they're not capitalised in the next few weeks a lot of them are going down. Those that don't will be revalued.

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