[marcoseliziario]

Softbank is trying, rather clumsily, to avoid "losing face". Looks like they came to the conclusion that should they let wework follow the natural course of things, it would taint the image of all their other investments.

The thing is, this is not going to work. Public market investors are wary and are not ready to buy over-valued assets without some really good reason. The party is over, and it doesn't mean we are entering into the apocalypse, but rather that the time of irrational dreams is over, and that we need to think things based not on irrational ideas, but by paying more attention to the fundamentals.

Money can still be made, but the whole VC world needs to stop thinking that every business is going to generate the absurd returns facebook and google gave. Those are black-swan events. Not every startup will give 6000% returns. Those were anomalies, it is not going to happen every day.

But, the thing is, even a 200% return over 5 years is a great investment. Most of time it would beat DOW or NASDAQ indexes even reinvesting dividends.

So, maybe excessive greed is breeding irrealistic expectations, which in turn is feeding terribly bad decisions.