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.
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"?
Time Warner was bought by AOL. They paid $184 billion, but much of this was in stock. She is smart, get pay in cash.
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.
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. Just to name the most spectacular failures. From Wikipedia: 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. No, I think it's called either "rewarding failure" or "old boys club".
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.
It's a long term capital gain so taxes will be more like $50M, lower taxes being her reward for being a good capitalist.
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.