David Rosenthal: belief

Transcript context

…You’re in a hard bet here because you think the insider has enough good information and if they’re putting money in—do you have a good lead? Okay, I'm in. Yeah, exactly. But people do tend to put their money where their mouth is. Literally, the insiders, I don't think have sold a share here—the major insiders—and I think that speaks volumes. Yeah. I guess A is the right thing. The way I want to get analytical on this would be for the shareholders who decided to put their dollars to work in the IPO versus other things they could put their dollars to work into how good of a decision was that. That's fairly cut and dry. It's basically, like you said, a 5x over two years. Any day of the week I will take that. It's much different than the crazy upside that you see in these acquisitions where $1 of Facebook's cash put into Instagram was a much much healthier return over the years. Maybe we should come up with a separate grading scale for IPOs. Basically, if you invest in the IPO, how good was the ensuing decade after that? Because I think that's really the way that you should think about it is for the new shareholder. In the past, we've often thought about how good of a use of the cash raised was for the company. Which in this case, looking at that perspective, I think that's the point you were arguing earlier. They've made very good use of it. I have no idea how they could have made better use of it, but the thing that does sort of—…

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