SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Krispy Kreme Doughnuts, Inc. (KKD)
KKD 21.000.0%Aug 4 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: who cares? who wrote (634)1/6/2001 5:56:43 PM
From: Jon Koplik  Read Replies (2) of 1001
 
Mr. Burns, since I am not yet on your SI "ignore" list (I think), maybe you will read this.

I thought it was pretty funny that you said the following :

"First, of course comes the secondary where the insiders finally get to make their millions, off taking this thing public. Once they've cashed out ... but basically at that point they could give a rip."

Ever hear of a (then) husband and wife team at Stanford University named Leonard Bosack and Sandra Lerner ?

They were among the founders of Cisco Systems.

I once read an article about how they eventually ended up with a decent sized piece of Cisco; and held on until Cisco was starting to become an amazing success.

Then, they cashed out; and ended up with something like $100 million or $200 million (I cannot remember the exact amount).

But the article went on to say that IF THEY HAD HELD ON to their CSCO shares, they would then have been worth $35 billion (Yes, billion with a "B").

(And -- I read this article several years ago. Even though CSCO is (right now) way off the all-time high share price, I would bet that it is still higher than the price when that article was written).

All you have stumbled upon in your observation that some of the long-time holders of KREM want to cash out some or all of their holdings is something that anyone who has studied micro-economics learns in an introductory course :

Increasing wealth has decreasing marginal utility.

(Translation : going from $0 wealth to $10 million has a LOT more utility than going from $10 million to $20 million).

OF COURSE these insiders are selling some shares.

It is the correct economic decision for them, even if KREM is likely to go MUCH higher in price (like CSCO did).

Jon.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News