Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (53521)	1/27/2003 3:30:40 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

Oh, Lizzie, now you're/we're in for it. uf

To: Lizzie Tudor who wrote (53521)	1/27/2003 3:48:36 PM
From: Stock Farmer	Read Replies (2) \| Respond to of 54805

The macro situation suggests that the capital markets will be starved for new entrants over the next few years. Positions which feed this starvation will attract rewards. The risks that startups face have not substantially increased (startups are still startups). But capital is so tight that valuations have plummeted. Resulting in more upside potential per buck invested. We haven't seen early stage markets this tight in a long time. Put these two together and the balance between risk and reward for early stage investment has been shifted in favor of reward. Ergo, investors should contemplate a higher than normal allocation in high-risk early stage (e.g. private) companies. John