> “Rule 9: Don’t ever do anything you don’t understand.”
In 2021 I bought $500 of stock in a VR software company who was crowdfunding. Price per share was $4 on a valuation of $60M.
Fast forward two years and they raise again…this time at a valuation of $170M. Naturally, I assumed my $500 was worth close to $1500 on paper.
Wrong.
By some magic, the common stock share price went from $4 to only $4.75 even as the company tripled in value.
Even though I “picked” well, my investment still lagged the general S&P of the same time period. I thought I understood what I was doing, but evidently I was the sucker.
In 2021 I bought $500 of stock in a VR software company who was crowdfunding. Price per share was $4 on a valuation of $60M.
Fast forward two years and they raise again…this time at a valuation of $170M. Naturally, I assumed my $500 was worth close to $1500 on paper.
Wrong.
By some magic, the common stock share price went from $4 to only $4.75 even as the company tripled in value.
Even though I “picked” well, my investment still lagged the general S&P of the same time period. I thought I understood what I was doing, but evidently I was the sucker.