Venture Capitalists Get Paid Well to Lose Money

Harvard Business Review

2013 had all the signs of being a comeback year for venture capital. The industry realized its highest returns since the Internet boom. Yet 2013 annual industry performance data from Cambridge Associates shows that venture capital continues to underperform the S&P 500, NASDAQ and Russell 2000. The ongoing poor performance of venture capital firms should be an obvious problem for institutional investors. What is the optimum level of VC commit?

Could a Four-Year-Old Do What Carl Icahn Does?

Harvard Business Review

I have my own version of this. Every time investor Carl Icahn makes headlines with another of his activist campaigns, I wonder, “Could my four-year-old do that?”. I do have a 15-year-old who could not in a million years be bothered to send Apple’s Tim Cook a letter urging him to “meaningfully accelerate and increase the magnitude of share repurchases.” Yet the simplicity and almost child-like nature of Icahn’s approach still begs examination.

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