Ariana Huffington laughed at by conservatives.

[LeeD]

Quote from nazzdack:

?.....is that called the "Peter Principle"?

Actually, quite the opposite. At a certain level spectacular failures improve carreer prospects. Think of hedge fund managers who ran multiple funds into a ground and every time collected even more money for the next fund "because of their experience".

Because in the corporate taking risks is hazardous to the career prospects, only most risk-averse people (or those with sufficient skill to attribute any failure to others) keep getting promoted. As a result, corporate executives are some of the most risk-averse people in the world. Then when promoted to CEO one suddenly has to take risk and take risk again. Given the whole career prepares futures CEOs not to take any risks, it considered that success is not a realistic target. Hence CEOs "with experience" are considered some special breed (of corporate executives who actually have taken some risks in their lives - usually with someone else's careers and money). Because of their rarity they are awarded exceptional compensation, not demanded much from and keep migrating from chairmanship to chairmanship, from boardroom to boardroom.

 

[Free Thinker]

Quote from nazzdack:

You'd only have to drink 4 beers instead of 6 to "get in the mood"?

300 million does a lot for "mood". besides shes not that bad for her age.

 

[nazzdack]

Quote from LeeD:
----Think of hedge fund managers who ran multiple funds into a ground and every time collected even more money for the next fund "because of their experience".
----only the most risk-averse people (or those with sufficient skill to attribute any failure to others) keep getting promoted....are awarded exceptional compensation, not demanded much from and keep migrating from chairmanship to chairmanship, from boardroom to boardroom.

1) ?...isn't that called the "Jesse Livermore Principle"? :eek:
2) What are the names of some of those "hedge fund managers"?
3) ?....isn't that called "survivorship bias"?

 

[nkhoi]

Time Warner was bought by AOL. They paid $184 billion, but much of this was in stock.

She is smart, get pay in cash.

 

[clacy]

When was she ever laughed at from a business standpoint?

People may not agree with her politically and may laugh at some of her politics and certainly some of the garbage that gets posted on her website, but that doesn't mean her business model wasn't smart.

 

[BigSalad]

Quote from nazzdack:


3) Is it "1999" all over again? :eek:

300 million ain't what it used to be

 

[LeeD]

Quote from nazzdack:

1) ?...isn't that called the "Jesse Livermore Principle"? :eek:

There is no academic consensus on what "Jesse Livermore Principle" is. None of these seem to fit the bill.

I have had Reminiscences of a Stock Operator on my desk for a few months now but have always found more interesting things to read, like ET gossip. I'll refrain from suggesting my version of the principle till I finish reading the book.

Quote from nazzdack:

2) What are the names of some of those "hedge fund managers"?

Just to name the most spectacular failures. From Wikipedia:

John Meriwether
LTCM
Meriwether founded the Long-Term Capital Management hedge fund in Greenwich, Connecticut in 1994. Long-Term Capital Management spectacularly collapsed in 1998.
JWM Partners
A year after LTCM's collapse, in 1999, Meriwether founded JWM Partners LLC. The Greenwich, Connecticut hedge fund opened with $250 million under management in 1999 and by 2007 had approximately $3 billion. The Financial crisis of 2007-2009 badly battered Meriwether's firm. From September 2007 to February 2009, his main fund lost 44 percent. On July 8, 2009, Meriwether closed the fund.
JM Advisors
Meriwether is opening his third hedge fund venture, named JM Advisors Management, also based in Greenwich, Connecticut, in 2010. The fund is expected use similar strategies as both LTCM and JWM, namely highly leveraged "relative value arbitrage"

Under the leadership of Nicholas Maounis $9 bln Amaranth Advisors LLC collapsed under a record $6.6 billion loss in 2006. In 2008 Nicholas Maounis started Verition Fund Management LLC with $200 mln.

Quote from nazzdack:

3) ?....isn't that called "survivorship bias"?

No, I think it's called either "rewarding failure" or "old boys club".

 

[ElecEquity]

She is a co-founder so she won't get 300 million. I'm not sure if there are VC's involved, but if so, they're certainly getting a chunk of that pie as well.

 

[Hurricane]

Quote from Pekelo:

Quote from AAAintheBeltway:

If she pays her taxes, that 100 mill will be just fine...

It's a long term capital gain so taxes will be more like $50M, lower taxes being her reward for being a good capitalist.

 

[denner]

LeeD has some excellent points in this thread, I completely agree with what he has said and it certainly explains the past decade or so of finance, IMO.