The funny thing is, a lot of these mush-brained first movers actually make a lot of money just by being first. They are bought out by a load of second or third place investors who end up holding the bag.
The later investors see the success of the first movers and try to replicate it, but without knowing what they are buying. At least the first investors usually know it’s speculative. When they sell to later investors the company magically becomes “established”, and is valued as if it will continue growing forever.
And the investors started slobbering and their brains turned to mush because they bought into this nonsense immediately.
The funny thing is, a lot of these mush-brained first movers actually make a lot of money just by being first. They are bought out by a load of second or third place investors who end up holding the bag.
The later investors see the success of the first movers and try to replicate it, but without knowing what they are buying. At least the first investors usually know it’s speculative. When they sell to later investors the company magically becomes “established”, and is valued as if it will continue growing forever.
Nothing grows forever.