|No dear, you don't understand - smart business people NEVER speculate with their own cash...they do deals with bankers.|
|Re: I don't think Jobs needed the loan. He seemed to have done very well. -- Dee W.||Post Reply||Top of thread||Forum|
Posted by: LateForLunch ® |
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The amount of money he wanted was extravagant. The difference in this is the difference between the definition of "investment" and "speculation". Investment banking firms do not engage in speculation. If they absorb risk, they follow very precise formulae for balancing it with profit potential.
All Jobs offered was a vague possibility of profit, no tangible revenue flow, no business plan generating products, services or new technology. Just egotistical posturing.
As it turned out the banker was right to walk away from the deal. Jobs never again produced anything on the same level of success as his first couple of decades. Jobs returned to run Apple soon after and largely abandoned all of his private projects to concentrate on that. Not long after he became sick with cancer. So they dodged a bullet.
If an entrepreneur isn't willing to assume the larger percentage of risk by investing large amounts of their own personal money or by providing collateral in case of failure, no investment banking firm would touch the deal.
Speculation is a fool's game. One of the principles of sound investing (for banks and people) is: The best way to have a lot of money is to KEEP a lot of money.
Modified by LateForLunch at Tue, Jun 16, 2020, 02:24:26
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