Everybody hated him at Facebook. Nobody was willing to work on his team because he was so rude. [0]
0 = Steven Levy's Facebook: The inside story
SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
31–40 of 63 posts
Re: SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
#32Chamath is one of the most self-serving-pretending-to-be-altruistic salesmen to ever set foot in SV. If you were still a “follower” after doing even the slightest bit of due diligence into the man, you deserve to lose money.
I’m curious why you believe he’s a self serving salesman. I’ve seen a few of his interviews on YouTube and particularly some of his CNBC interviews. I can’t recall him trying to give me specific investing advice, but his analysis on a lot of recent events has made sense. And a lot of his general life advice is great. I’m a follower of Chamath, but that doesn’t mean I believe he can predict the stock market any better…
So basically funds cannot advertise to poor people, or at all because poor people might hear. Those are the regulations in this country. To get around that (aside from using a different registration exemption), a person in the fund is elevated to mythical celebrity status and just talks about money topics a lot, while the fund self fulfills this person’s prophecies by throwing money at all problems (investments inside the company to make them profitable, whether the fund can liquidate at those prices or not)
Chamath being Mr-Correct-and-influential-Money-Guy is only to be a self serving salesman
Wealthy enough people hear about it and can buy into Social Capital as a limited partner. Or be a SPAC co-sponsor, or part investor in a new SPAC, or be part of the retail investing hoard that also provides liquidity.
There is no other reason for him to talk at all.
Riding and stoking the populist sentiment is only self serving. That doesn't mean he conned anyone (the grandparent post did not use that term), maybe ripped off but this aspect is no different than any other investment that you’re allowed to take risks on. There isnt anything special about Chamath, except that his niche involves pandering to “the little guy”.
Re: SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
#33Earlier quoted context omitted.
Strongly agree. I listened to Chamath's talks for a couple hours. The impression one gets is a smart, charismatic and driven guy... Who uses every dishonest fake-populist rhetorical trick in the book. I still think he's an interesting listen, but you've got to be thoughtful about it. Slippery dude.
I was put off by the way he attacked Vlad Tenev. Tenev became a scapegoat for the GME fiasco, and, as the facts came out, it seemed he really didn't deserve to. I get that Tenev's "we don't have liquidity problems" answer was a little disingenuous, but it also wasn't totally wrong if you include a bunch of fine print, and I get how it was necessary. In the end, it turned out that the whole T+2 system was stupid, and…
His attack on Vlad was especially disingenuous given that he was SPACing a competitor (SoFi). Especially since he specifically targeted PFOF, which SoFi also engages in.
Re: SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
#34I like to view SPACS as synthetic bonds. Bonds are boring so let’s instead describe them a different way.
SPACS are loot boxes. You have a chance at some point in the next 2 years that it may open. If you don’t like the opened stock, you can get a refund of 10$ plus interest. If it doesn’t open the same thing occurs.
As long as you are buying spacs (not companies that have completed the spac merger) at or below NAV you won’t get burned. You just pay in opportunity cost. If you pay for a pre LOI spac above NAV u are taking on risk and it is expected that you will get burned.
Lots of Chamath’s followers over paid for his spacs which ultimately burned them.
Re: SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
#35SPACs should be banned. They’re a vehicle for perpetuation of the market as a gambling platform, while undermining the transparency requirements of the market.
> SPACs should be banned That's just treating the symptoms, though?
Sure, but this didn’t seem like the place to discuss replacing the market economy with one which exists in equilibrium with the planet.
Re: SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
#36Chamath is one of the most self-serving-pretending-to-be-altruistic salesmen to ever set foot in SV. If you were still a “follower” after doing even the slightest bit of due diligence into the man, you deserve to lose money.
The thing is he says a lot of things that are very true that others aren't willing to say publicly. I guess that's the hook he gets people with. He then mixes the truths with a lot of half truths or false statements to pander to his audience.
Re: SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
#37I know very little about him but was initially intrigued because he’s often referred to as a “good guy” with altruistic motives who also isn’t afraid to call others out.
Then I saw him on CNBC in the midst of the GameStop fiasco, railing against Robinhood on the premise that people should be outraged because Robinhood almost ran out of money and had to restrict trades.
Whether or not that’s something to be outraged about is one question. What turned me off is that he seemed to be completely ignoring parts of the story, instead finding new angles to throw on the fire to keep people riled up. The whole thing was a major red flag for me.
Re: SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
#38Earlier quoted context omitted.
That isn't a realistic representation. SPACs usually start at $10 when formed, then shoot up at least 4x on announcements and hype, the early investors (i.e. people like Chamath) cash out at the peak, then the stock price tanks to $15. Technically the stock is "up" from the original listing price, but it's really just a big scam.
You grossly misunderstand SPACs if you think they shoot up at least 4x on announcement & hype. This is a very rare phenomenon, and even with the most prominent SPAC sponsor (Chamath), of his current 4 SPAC deals that are post-DA, only 1 has exemplified what you characterize (Virgin Galactic's $55 ATH). The others have never broke $40 or above. This includes every SPAC he has been in the PIPE (5) with exception of 1 (…
Ok maybe I should have said my description is the ideal scenario in the eyes of SPAC creators. Obviously not every one will have a 4x price surge, and not every one will completely tank. There's a reason why they try to attach celebrities or well known businesspeople...purely to build hype. If you (and the creators of the SPACs) agree they're destined for poor performance, how is it not a big scam?
It's kind of like around the time of the Dutch East India Company when tons of bogus companies popped up and publicly sold shares that completely tanked shortly after (e.g. a company claiming it invented a perpetual motion wheel machine, etc).
I'm referencing tickers such as APPH, NKLA, HYLN, THCB, LACQ. I'd wager a bet that most of the early investors for these examples are already cashed out at a significant profit knowing they would tank shortly after they did.
Re: SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
#39SPACs should be banned. They’re a vehicle for perpetuation of the market as a gambling platform, while undermining the transparency requirements of the market.
I agree.
When I first started hearing about them a few months ago (oddly enough because I was listening to one of Jason Calacanis’s shows with Chamath) they sounded off. Had also just recently rewatched The Big Short.
Back in 2006-ish an old boss at the time was doing some hinky shit with penny stocks. First time I had ever heard about them back then.
After doing some research to learn about SPACs, the whole concept is incredibly scammy. It’s all just a weird mutated combo of penny stocks and the crap being pulled in 2007. I know, that’s not an exact true definition. I’m trying to make a generalization.
Re: SPAC Wipeout Is Punishing Followers of Chamath Palihapitiya
#40Earlier quoted context omitted.
Strongly agree. I listened to Chamath's talks for a couple hours. The impression one gets is a smart, charismatic and driven guy... Who uses every dishonest fake-populist rhetorical trick in the book. I still think he's an interesting listen, but you've got to be thoughtful about it. Slippery dude.
I was put off by the way he attacked Vlad Tenev. Tenev became a scapegoat for the GME fiasco, and, as the facts came out, it seemed he really didn't deserve to. I get that Tenev's "we don't have liquidity problems" answer was a little disingenuous, but it also wasn't totally wrong if you include a bunch of fine print, and I get how it was necessary. In the end, it turned out that the whole T+2 system was stupid, and…
Re: fees
The discount broker always gets paid. It might be from fees or it might be from PFOF and lending shares in margin accounts and pocketing the proceeds, but either way, they get their money.
Other brokers like IKBR charge fees for all trades, but split the share lending proceeds with you 50/50.