Doug Henwood dhenwood at
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.


More information about the lbo-talk mailing list