No. of Recommendations: 13
It's hard not to have a bit of a chuckle at the foolishness of others, even if it's ungentlemanly to get joy from their misfortune.
I love the last line in the FT article on the subject
"Another person involved in the negotiations said the question left by the episode was not how the deal was structured, or how much money Citadel would make on the transaction, or where Situational Awareness would go from here.
“The real question is how did anyone invest so much money, and then lend so much money, to a . . . kid with no personal experience and no infrastructure?”
I can see the sense in running a b*lls-to-the-walls all-growth fund, ARKK style. But borrowing money against those holdings to lever up as well?? Pin a message to my back that says "kick me". And my investors, too.
Mr Buffett:
"My partner Charlie says there is only three ways a smart person can go broke: liquor, ladies and leverage," Buffett said during a 2018 CNBC interview. Then came the twist: "Now the truth is — the first two he just added because they started with L — it's leverage."
Jim
