winforlose wrote:thinktank wrote:Oh geez.
Taylor and Lore are worth the same amount of money (Lore may be worth more).
I have no reason to believe Taylor is any more liquid than Lore.
Plus this group has more money than God (Bloomberg, Schmidt, Lore). 105 billion + 25 billion + 3 or 4 billion.
That money blows Taylor out of the water.
And, Lo-Rod calls the shots.
I think this is a great setup.
I don’t want you to misunderstand what I am trying to say. This is not an attack. I am trying to help you understand the business principles that you are misstating.
Principle 1: If you know you are going to operate at a loss, net worth is not the key figure. It doesn’t matter if you are worth 1 billion or 2, what matters is how much it costs to pay the difference between money in and money out. If you have a line of credit at a low interest rate vs a high interest rate. If you have the reserves to pay the interest without having to sell a different investment and not miss out on that opportunity. Also having multiple investments is important for diversifying which is a strategy to reduce risk in investing.
Principle 2: Minority partners do not give majority partners money for nothing. Bloomberg might loan the money to ownership at a lower rate than the banks, but that comes with strings like some level of control over spending levels or operating costs. Or it could just straight up cost equity. The more of the pie ALORE gives away the less profit they can return on the investment. So yes having deep pockets in the minority ownership has some value, but it is not the same as having it in the majority ownership group.
I, in turn, am trying to help you.
First, you were just wrong for a whole year, so don’t be surprised if myself and others aren’t going to put stock in what you say now.
Second, based on what I just read, you yourself do not have a sufficient understanding of this.
