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Joined 11 months ago
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Cake day: August 5th, 2023

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  • Actually quite interesting in the case of Ballmer as he was an employee compensated via stock rather than straight up cash

    You’d consider that an investment as he was investing his time to be a business manager while being compensated probably less in cash that would be normal for the position

    So as early Microsoft didn’t have the cash on hand, or didn’t want to give up that cash they could use elsewhere they gave equity as compensation

    How do you suggest we should remove this situation? Should we not allow compensation in the form of equity? Or should ownership of equity not exist generally?




  • I’m confused, you want to have people crowd fund R&D to increase the odds a product goes to market. And then expect no profit on the back of that investment? After the potentially huge initial cost does the company then sell the product at cost? Or do they make a profit now?

    Can you give an example of a bailout you disagree with? Pretty much all bailouts I’m aware of recoup their costs Also the reason private equity doesn’t bail out these companies is that unlike a government they may not be able to weather a significant period where they aren’t getting a large cash flow, as they need to stay afloat as well. A government on the other hand is better prepared to recoup costs over time, and will do so if it means that depositors funds are safe. They are much more likely to let a hedge fund just fold as the participants are capable of withstanding such losses




  • How would you crowd fund a company that isn’t promising a specific set of products? Normally the way we do crowd funding is to offer essentially a pre sale of a product. Sure sometimes people just put forward cash because they really want the product to exist but it isn’t the norm But for a company that will be a service provider what incentive exists to fork over potentially millions of dollars? In a crowd funding scheme you expect no profit share so why would you invest in them?

    Compared to in this case buying a percentage of a company early on to provide them with capital on the basis that you may make money in the future

    Also those bailouts while somewhat distasteful were played back to the government with interest