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Fallacies of the past performance

letter #106

Fallacies of the past performance

Letter # 106 

“He had no business plan, no revenues – but his eyes were very strong” said Masayoshi Son, CEO of SoftBank about Jack Ma, founder of Alibaba as he invested $20m in the year 2000. Over the next two decades, that investment topped $150b in value.

This incredible investment decision laid the seeds for Vision Funds (SVF1, SVF2 and LatAm) that raised $150b in commitments for SoftBank.

By Sept-21, investors in SVF were sitting pretty on gains over $56b – with several impending IPOs and deals. What could go wrong? Well, a number of things.

In our ET article today, we note how investors in SVF have now given up almost all gains, SoftBank’s investment in SVF is now at a loss, and why Son personally owes SoftBank $5b. Well, the cycle hasn’t fully turned yet, and the learnings are plenty – read here:

Read the previous 105 articles here:


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