121–130 of 205 posts
Earlier quoted context omitted.
After taking into account driver incentives (which should be classified as cost of revenue, not sales and marketing), their unit economics are unprofitable.
Now that I'm thinking of it Uber and WeWork both have 'alternative' accounting methods. Would love to see if 'alternative' accounting is a strong negative indicator for post-IPO health
I wonder what his effective tax rate will be on these sales.
Tax rate is 20% on long term capital gains. Will be a nightmare to figure out the cost basis for everything
From TFA: > The 43-year-old’s remaining stake in the ride-hailing company now constitutes about a fifth of his $3 billion fortune, according to the Bloomberg Billionaires Index, down from about 75% before the lockup. To be fair, if I had 75% of my net worth in a single asset, I'd also try to diversify. My wife and I both have lots of stock in the companies we work for, due to RSUs and employee stock purchase programs…
As an aside to the parent poster, an often-stated guideline for the maximum amount you should own in the companies you work for is 10% of your portfolio value [1][2]. Modern portfolio theory (Markowitz, et. al.) calculations for a bundle of assets probably would bear out that 20% in a single stock is not on the efficient frontier [3]. [1] https://www.marketwatch.com/story/dont-invest-in-your-compan... [2] https://www…
Earlier quoted context omitted.
You can still want to maintain influence without having personal/financial exposure to the consequences.
But that sends a wickedly powerful statement to the market that you as a remaining board member would not hold the shares of the company you oversee... That's the discussion here.
Isn't that just the money he would need to pay in taxes??? So he has to sell?
The United States doesn't have a wealth tax (yet). Once you have something, you pay no taxes on it forever.
This is a serious question, so I'm not understanding the downvotes.
When the company i worked for IPO'd I had to pay taxes on the stock when the paper money turned into real money.
Earlier quoted context omitted.
There are realms of wealth. Even 100m is not enough to comfortably afford a private jet. Several ultra wealthy like Bill Gates diversified a billion dollars from their company which seems to be about the limit where more money mostly becomes an abstraction. One example is people who actually own mansions generally live in a relatively small space inside. You can only really use one room at a time and walking around t…
This comment reminds me of another comment [0] on Reddit that talks about the different levels of wealth. An eye-opener for the rest of us for sure. [0]. https://www.reddit.com/r/AskReddit/comments/2s9u0s/what_do_i...
FWIW, I kno(e)w four billionaires through my work (one deceased, one I lost contact with), and their life is not at all like described here, though they could afford that and more they keep a pretty low profile and you likely have never heard of them, and likely never will. But the 'controlling interest in a company you've likely heard about' is a common factor for three of those four.
The people that throw money around as if there is no tomorrow are typically the ones that have an unhealthy urge to be recognized as wealthy, the really wealthy people are relatively quiet about it in comparison.
That may of course be a reflection of the group of people that person connected to, I can see how there are very different circles of wealthy people just as there are different circles of people that are not wealthy.
Earlier quoted context omitted.
You can’t diversify radically from your own company and at the same time tell investors it’s the future and it’s going to be trillion dollar business etc. If he really believed that he wouldn’t diversify. Look at Larry Ellison or the Google founders if you want examples of someone who believes financially in their stakes in their own companies.
> You can’t diversify radically from your own company and at the same time tell investors it’s the future and it’s going to be trillion dollar business etc. Sure you can; in fact in many cases you should. Say, one knows (to keep things scientific; replace "knows" with "honestly believes" to somewhat reflect real life) his $100M invested in a company to have a 50% chance of being worth $1B in 5 years and 50% chance of…
From TFA: > The 43-year-old’s remaining stake in the ride-hailing company now constitutes about a fifth of his $3 billion fortune, according to the Bloomberg Billionaires Index, down from about 75% before the lockup. To be fair, if I had 75% of my net worth in a single asset, I'd also try to diversify. My wife and I both have lots of stock in the companies we work for, due to RSUs and employee stock purchase programs…
As an aside to the parent poster, an often-stated guideline for the maximum amount you should own in the companies you work for is 10% of your portfolio value [1][2]. Modern portfolio theory (Markowitz, et. al.) calculations for a bundle of assets probably would bear out that 20% in a single stock is not on the efficient frontier [3]. [1] https://www.marketwatch.com/story/dont-invest-in-your-compan... [2] https://www…
Earlier quoted context omitted.
But that sends a wickedly powerful statement to the market that you as a remaining board member would not hold the shares of the company you oversee... That's the discussion here.
Of all the negative signals Uber sends, this is the one the market is going to take issue with?