Chapter
Risks of Investing in Private Funds
14:06 - 21:07 (07:00)
Investing in private funds has two major drawbacks: illiquidity and selective data presentation. It is important to fully understand these risks before choosing to invest in a private fund instead of a more traditional option such as the S&P 500.
Clips
The only metric that really matters when it comes to private investing is how much cash comes out relative to the cash that was originally put in.
14:06 - 15:31 (01:24)
Summary
The only metric that really matters when it comes to private investing is how much cash comes out relative to the cash that was originally put in. This often gets overshadowed by the excitement of being sold stories of massive returns, when in reality it is much smarter to invest in something more stable such as the S&P.
ChapterRisks of Investing in Private Funds
EpisodeE78: VC fund metrics that matter, private market update, recession, student loans, Bill Hwang arrest
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Investing in private funds has two major negatives compared to the S&P 500 - it's illiquid and potentially misleading when reporting investment returns.
15:31 - 21:07 (05:36)
Summary
Investing in private funds has two major negatives compared to the S&P 500 - it's illiquid and potentially misleading when reporting investment returns. The SEC mandating standardized reporting for private investing could save investors from losing their money.