CapitalMarkets

Doug Henwood dhenwood at panix.com
Wed Aug 30 12:06:59 PDT 2000


Max Sawicky wrote:


>Who's to say that investment in proportion to past
>success is the best allocation of capital? If it
>isn't, mustn't you have a capital market?

Problem is that the capital market's judgments of future success are basically an extrapolation from the present and recent past. Venture capitalists are a bit nervier, but the broad public markets are dominated by the herd.

Doug



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