Doesn’t seem to perform better than S&P.
The latest turn against fast-growing but possibly unsustainable young companies isn’t only about the specific struggles of WeWork and Uber or SoftBank’s bazooka of startup cash. Stresses on those companies call into question the entire model of funneling oodles of cash into a company to help it grow very big very fast.
Of the more than $23 billion in stock that Uber has sold during its lifetime, more than 90% traded at share prices higher than the current one. And for a good chunk of the rest, investors could have done nearly as well in a plain-vanilla equity index fund. This is the most successful company of the uber-unicorn era, and it’s been a poor investment for nearly everyone.