Masayoshi son’s 100B Vision fund has declared its current results and they panned out exactly the way we had thought…no surprises…write-downs, regrets, and the board overhaul.
There will not be any Vision fund 1, 2 and 3… thank God!
Extreme optimism and aggressive bets have contributed to a decline in profitability. The fund came to the rescue of many unicorns, but it could not find its own knight in the shining armour.
But people have short term memory which gets ruthlessly exploited. In 2017, Argentina raised money for 100 years, just about a year after its latest default! During the tech bubble, companies were advised by the marquee investment banks to add ‘.com’ or ‘some tech sounding words’ for better marketability while fundraising. And the patterns repeat without fail—WeWork, part of the Vision fund, was masquerading as a tech company while doing the real estate rental business.
We just cannot blame corporate greed for our miseries.
It is the tail events that prove to be disastrous and you can’t map them in your models coz only the known risks get priced in.
“What gets measured gets managed”