![]() These resources can be squandered quickly and needlessly if you go chasing shiny objects like endless research and development projects (which sank Motorola) or “gold rush” markets nobody understands (like the dot-com bust.) The same is true for business assets – good employees, intellectual property, a strong network and market reputation. You can work and save your entire life and lose it all in a matter of days. That’s the nature of wealth: hard to gain, easy to lose. Many users at r/Wallstreetbets invested their life savings into $GME, only to lose more than 80% in the crash. Lastly, have your board of directors hold you accountable to those goals. The best exits begin by planting seeds 2 years before they end, so start early. Treat the business as your personal tax shelter, distorting their company financials to the point that no buyer trusts the company’s earnings.ĭo your research on when to get acquired and how you will get there.Focusing heavily on profitability at the expense of growth and never become large enough to be acquired.The most common exit mistakes we see are: Small businesses miss their exit opportunities too. R/Wallstreetbets did not have is a realistic plan to get out while profits were up. This is best done through forecasting and regular financial strategy meetings. You must anticipate risks and hedge appropriately. (“Stonks (stocks) only go up!” as reddit posters facetiously put it.) As a business owner, you cannot wait until someone moved your cheese to pivot. They cling to something that is working and assume it will never fail. This is a critical lesson in business: planning is important but being willing to change plans is more important.īad entrepreneurs fail to adapt. Their only mistake was failing to face reality and get out while the profits were good. Other users planned to ride the stock “to the moon!” In reality, they both made a good run up to $483/share. ![]() the 52-week low – probably not realistic. The investors at r/Wallstreetbets planned to exit at $1000/share, a 24,900% increase vs. Here’s our top 5 entrepreneurial lessons learned by the chaos of r/Wallstreetbets: Develop a plan and be ready to abandon it As professional risk-takers who often find themselves innovating new market-shifting processes, the wins and losses of the $GME short-squeeze are a parable for starting any risky venture. The $GME short squeeze was unprecedented in financial history, so what does it mean for society? What can we learn from it? How can I use it to make money?Įntrepreneurs have much to learn from the events of the past few weeks. Market manipulation leading to not retail investors demise, but demise of the institutional investors surely can not be a good thing? Ultimately doesn't this impact all of us who are invested in the stock market?Īpologizing in advance for asking what perhaps is a simple question.Have you been watching r/Wallstreetbets? At CFOshare, my team is excessively entertained by what’s happening with $GME. Would like some experienced traders' advice on this idea. What if GME (say as an example) prices go UP but other stock prices go DOWN? What if hypothetically institutions start to liquidate their assets, causing a meltdown of other stocks and a crash in the market? Let's say hypothetically retail investors wield enough power to to cause a short squeeze when retail investors put their minds to it, leading to institutional investors having billions of loss. There is talk about short squeeze and gamma squeeze et cetera. It's so incredible what is happening with GME stock prices due to retail investors, I grabbed a popcorn and have been watching GME Friday and Monday and likely will watch the rest of this week. I didn't realize WSB had decided to buy GME. I watched last week Friday, GME prices rising with no obvious reasons to back the drastic gap up of GME prices. This is not truly related to theta decay but it's something on my mind related to the stock market. Okay - so first time posting on thetagang after lurking a few months.
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