Comment on Venture capital has a self-dealing problemComments−dsjoerg11yImagine if you gave money to Warren Buffett to invest and he turned around and invested it in a company started by one of his own cronies?!−shawnhermans11yWarren Buffett has a solid reputation of making excellent investments. As long as the money returned a good investment, I wouldn't care at all.−scott_karana11yI'd be suspicious, but then again, since his reputation is based on past successes, I'd still be okay with it.The corollary is that the crony's company did fail, his reputation would suffer, and he'd lose business!
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Imagine if you gave money to Warren Buffett to invest and he turned around and invested it in a company started by one of his own cronies?!
Warren Buffett has a solid reputation of making excellent investments. As long as the money returned a good investment, I wouldn't care at all.
I'd be suspicious, but then again, since his reputation is based on past successes, I'd still be okay with it.
The corollary is that the crony's company did fail, his reputation would suffer, and he'd lose business!