Hype Man
Bloomberg Businessweek|May 17, 2021
Chamath Palihapitiya—tech billionaire, Golden State Warriors co-owner, and all-around meme lord—has a sure-thing, 100%-can’tmiss investment for you that will definitely, absolutely pay off for him
By Zeke Faux
Hype Man

One morning last October, as wildfires raged across Northern California, President Donald Trump convalesced from Covid-19, and Congress debated how big of a stimulus bill would be needed to rescue the economy, Chamath Palihapitiya went on TV to pitch investors on the latest stock he was taking public.

In a blue blazer and glasses, and accompanied by a bulletpointed slide deck, the Facebook-executive-turned-venturecapitalist explained how Clover Health Investments Corp. uses powerful machine-learning software to recommend treatments that keep people healthier. He predicted confidently that the insurer’s revenue would triple in two years and that its stock would increase tenfold in a decade. He granted that, yes, he’d received a stake in Clover for setting up the deal to take it public, but he said his interests were aligned with those of other investors, because he and his partners had also put about $171 million into the company themselves. “There is no way that I can win unless the stock goes up,” he told CNBC’s Squawk Box, slicing his hand through the air to punctuate each word. “This is not some get-rich-quick scheme, at least for me.”

What Palihapitiya said was partially true, in that someone who’s already wealthy enough to be part-owner of the Golden State Warriors can’t by definition get rich quick. But the way the deal was structured made it almost impossible for him to lose. Even as investors who bought the stock after watching him on TV would lose 28%, as of May 11, Palihapitiya and his partners would almost double their money, much of which was borrowed to begin with.

هذه القصة مأخوذة من طبعة May 17, 2021 من Bloomberg Businessweek.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة May 17, 2021 من Bloomberg Businessweek.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

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