Daily Archives: September 21, 2024

Book Bits: 21 September 2024

The Money Trap: Lost Illusions Inside the Tech Bubble
Alok Sama
Interview with author via TechCrunch
Sama delved into points of his book, particularly the psychology of investment hype cycles and the precedent set in Silicon Valley of valuing companies based on growth predictions rather than metrics like revenue and profits. While investors are doing more due diligence in today’s risk-averse market, Sama said it’s a balance between too careful and too investment-happy.
He said Son had the opportunity to invest in Facebook at a $10 billion valuation back in 2009, but ultimately passed. Today, Meta’s valuation is over $1 trillion. “That was a case of Masa having real valuation discipline, but that came back to haunt him. That’s just the reality of tech investing.”

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