Chamath & The SPAC Bust: A Cautionary Tale for Investors

Watch the CMQ analysis of the Wall Sreet Journal's investigation into how company insiders made billions before the SPAC Bust. This video is a warning to all investors: beware of investments in SPACs and the people who promote them! SPACs are a high-risk, high-return investment vehicle and there's always the potential for fraud and insider trading.

"The SPAC boom cost investors billions. Insiders in the companies that went public were on the other side of the trade. Executives and early investors in companies that went public via SPACs sold shares worth $22 billion through well-timed trades, profiting before share prices collapsed.

Some of the biggest winners were Detroit Pistons owner Tom Gores’s investment firm Platinum Equity, British billionaire Richard Branson and convicted Nikola founder Trevor Milton. They were among many insiders who got shares on the cheap and sold them as they rose in value, according to a Wall Street Journal analysis of insider-trading disclosures associated with more than 200 companies that did SPAC deals.

Companies that went public this way have lost more than $100 billion in market value. At least 12 have filed for bankruptcy and more than 100 are running low on cash, battered by higher interest rates and rising costs.

Many executives claimed during the boom that SPAC mergers were a better way for companies to go public than traditional initial public offerings. “It’s easy to understand why executives at the companies went with this option,” said New York University Law School professor Michael Ohlrogge, who studies SPACs. “It wasn’t because it was a better financial technology—it was because it was just better for them.”

[DailyProg]

You are the only stock analyst that I listen to. Keep up the amazing work

[isiirpriizz]

Hey I was the guy you spoke to on that live that day great pretty cool you remember that. great video nice to see Chamath’s scumminess come to light

[xennialnick]

Not as good as your Andrei Jikh impersonation....in fact its kinda the same 😂

Good video Chris. Love your channel.

[williamgarrison]

When Chamath sold out of the companies, sometimes months after he’d say he’s all in, his excuse was always the same, he’d say “I reserve the right to change my mind.”

[whatnow]

I agree with @scipoly. I spent way too much time looking for your channel only to remember that I was already subscribed to your channel and you hadn't posted in what feels like FOREVER! Please keep creating. Anything I can do to help you please let me know. I worked for a creator for about a year who had over 100k subs and If I can help let me know.

[octopusonmyback]

The shocking thing is that I just googled, "chamath palihapitiya wall street journal", and all the stories that came up were of the WSJ praising him. So either you made this up or he's managed to game the system. Of course, I'm leaning to the latter. But WTF!

[Skankhunt.]

For $300 million we'd all do the same thing. Dont hate the player hate the game