The Business On: Michael Moe, founder, GSV Capital
Wednesday 29 June 2011
Who's he, and what's GSV?
Mr Moe is an American research analyst turned investment writer turned fund manager, with quite a following on America's West Coast. He founded GSV earlier this year to invest in hot private companies.
You mean he is one of those blowing the new tech bubble?
That is one way of looking at it. GSV has echoes of the dot.com boom of a decade ago, when publicly quoted investment vehicles sprung up to allow ordinary investors access to frothy start-ups. And then there is what happened on Monday this week ...
Monday this week?
Mr Moe said he had put $6.6m (£4.1m) of GSV's money into shares of Facebook – a "one-of-a-kind business which has created enormous network effects", he called it. He might as well have just called out: "Stampede."
Investors decided buying GSV shares was the equivalent of getting in early on Facebook's flotation next year, and GSV shares soared 42 per cent. GSV's market value went up $14m, which implies those investors believe Facebook could triple in value.
Maybe it will
Maybe it will. Mr Moe has certainly spotted bargains before. He madehis name when, in 1992, he predicted that a humble coffee chain called Starbucks was going to become a global superstar. And he didn't even drink coffee.
What's the secret?
No secret. In fact, it is boilerplate investment theory. Look for the "Four Ps": people, product, potential and predictability. If these sound "corny and unsophisticated", he says, "they are". But apply them properly and, as per the title of his book, you could be Finding the Next Starbucks.
Um, the largest social network is hardly an undiscovered gem
That is, indeed, one way of looking at it. If Facebook is the new Starbucks, I'm a skinny latte.
- 1 Moscow voted the world's unfriendliest city
- 2 The excuses your boss is most likely to believe when you call in sick
- 3 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 4 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...