Are these startups profitable?
In this week’s video insight, I report on recent developments in the private equity world. In March when the financial world acknowledged a pandemic many investors predicted private equity and start up wallets would be zipped up and the growth and private equity valuations was near an end. But here we are, six months down the road and the both the pandemic and elevated private equity valuations remain.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Fred
:
I love these examples, thank you. I have a suspicion that these ridiculous valuations will persist until the risk free rate increases sufficiently to provide a fiscal time limit and penalty for inefficient use of capital. This may be in 2025, maybe never.
Roger Montgomery
:
Thanks for sharing Fred. I think you are right.