1/ The collapse of @SBF_FTX (yes, both FTX and SBF's alleged net worth) underscores the need for @Forbes, and others but especially Forbes, to change how they estimate the net worth of the allegedly most wealthy people.

@Steven_Ehrlich @ChaseWithorn @SteveForbesCEO
2/ If a handful of investments funds put up, say, $100 million in your company and give it a valuation of $2.5 billion, #Forbes400 will call you a billionaire if you own half the company. This is done no matter how much revenue or profit the company has.

cc @KerryDolan
3/ This valuation is done even if companies of similar structure, revenue and profit trade at much lower multiples in the public market.

Oops. Strike that. Did I compare privately-held companies with no public books to publicly-traded companies that file reports quarterly?

Oy.
4/ In September 2022, FTX tried raising $1 billion from investors at a valuation of $32 billion; a valuation in place from earlier.

With SBF owning around half of the company and other of his assets, his net worth was kept by Forbes at $17 billion 5 days following this news:
5/ Here is SBF's net worth of $17.2 billion (nice touch there of point two) as of 9/27/22" on the Forbes website all because a group of arrogant clowns who have been taken on a ride decided that SBX is worth $32 billion.
6/ It gets worse, according to the SEC press release, FTX received $1.8 billion in investor funds.

This means that investors had put up only 5.6% of their $32 billion valuation, yet this small sum (in relative terms) was enough to crown SBF a $17 billion dollar person?

Please!
7/ By this standard, if a few people value my company at $2 billion at $100 a share and they give me a few $100, Forbes can list me as a billionaire.

Ok.

Maybe not for a few hundred dollars, but what IS the Forbes (and Bloomberg) standard?

cc @KerryDolan @ChaseWithorn
8/ The next measuring stick would be to look where companies in this or the similar product space trade at in the public market.

Ok. Let's look at Coinbase.

The company had $7.8 billion net revenue in 2021 and its market capitalization is now less than $10 billion.
9/ Even if you go back a half a year, before many Crypto-related companies tanked, the Coinbase market cap was only a few times its NET revenue.

SBX allegedly had $1 billion in revenue in 2021 and it was expected to be similar this year.

Why are they valued 32 times this level?
10/ It gets worse:

Coinbase earned $3 billion last year while FTX allegedly earned $388 million.

Coinbase's market value at the start of the year was 16 times their earnings. Now it's abit more than 3x this amount.

FTX if alive should have been worth now maybe $1.2 billion.
11/ All in all, FTX was not a $32 billion collapse and SBF didn't lose $17 billion.

Net worths should be measured by looking at the value that the broad public puts on things; not what a few dozen clowns or less decide something is worth.
12/ Cash, currency, real estate, and public stock are examples of things to be counted.

Stocks in privately-held companies are valuable too but only when set at valuations similar to what publicly-traded companies are at.

Wine, art and cars? Sure. But they too vary.

Anyway.

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More from @YossiGestetner

Dec 12
Days ago Mr. Wonderful was still shilling for SBF saying he would invest with him again.
Here.

18 minutes.

Last week, @kevinolearytv suggested on @CNBC that SBF was not necessarily a fraud.

Despite the positive media coverage of him in recent weeks, the basic facts showed that he didn't just "mismanage" a company.

It wasn't about "lack of controls."

It was a MASSIVE FRAUD!
Read 5 tweets
Dec 9
Twitter's shtick alone may have impacted the 43,000 votes spread in 3 states that decided the 2020 elections.
Thousands of conservatives wasted years, literal YEARS, writing tweets and threads thinking - over time doubtful - that they have a fair shot here. Yet it was rigged all along, AND the public was gaslit that what they feel/see is happening isn't happening.
What was called by the public shadow banning, was called "Visibility Filters" inside Twitter so they denied that shadow banning took place while not admitting the existence - or extent - of the filters and the bias of its implementation.

Why didn't this leak all these years?
Read 4 tweets
Dec 8
In 1996, the Defense of Marriage Act AGAINST SSM, passed the Senate 85-14 and 342-67 in House.

Recently, the Senate passed what is essentially a reversal backed by 12 GOPs and today every House Dem + 39 Republicans voted for it.

Vote Republican. Yesterday's Democrats; Today.
The Respect of Marriage Act is "Yesterday's Democrats Today" on high speed because yesterday's Democrats voted totally opposite of it.

Maybe not. "Yesterday's Democrats Today" is usually a 10-15 year lag.

DOMA would not get most Dems 10-15 years ago as it did 25 years ago.
As always, I'm not discussing the policy itself.

I'm discussing the politics of politics.

Time and again, Democrats set the agenda and Republicans follow along 5-10 years later. First a fraction of them and then the rest.

Vote Republican. Yesterday's Democrats; Today.
Read 4 tweets
Dec 7
Some of "Trumps Candidates" won 50-68% of the high turnout vote. Is your stance that a quarter-plus of the voters that you need for the general are idiots?

Others (Oz) won only 32% of the primary so why couldn't you consolidate the rest 68% behind your "quality candidate"?
Remember 68%.

68% is what @HerschelWalker got in the high turnout Primary so when you attack him as a choice, you are attacking those whom you need in November.

68% is what Dr Oz did NOT get in the primary yet the GOP couldn't consolidate the rest of the party behind quality.🤡
Fetterman won 57% in the Dem Primary.

Why didn't Republicans find a Fetterman-like candidate and line up 57% of the vote behind him?

68% did not vote for Oz so I am sure if the GOP found a Fetterman Quality (🤡), that guy would win primary AND general.

Read 5 tweets
Dec 7
Thank you defeatists Never Trumpers for whining all month how no-chance @HerschelWalker has in the runoff which helped depress GOP vote.

Thank you!

Go ahead. Let me read your latest Blame-Trump Thread/Article.

(Walker is a rubber stamp for @LeaderMcConnell so whatever).
For an OMG-BAD candidate, Walker held his own.

In 2018, Abrams lost to Kemp by 1.4 points. She was held up as a good candidate and ran again in 2022.

Walker lost to an incumbent Senator by only 0.9 points in November, and it is quite close in the runoff (despite defeatist NTs).
A reminder to @EWErickson et al that in early 2020, Kemp appointed Loeffler as Senator as the Establishment's choice to the seat now held by Warnock.

"McConnell backs Georgia governor’s pick for Senate amid Trump skepticism." - Politico 12/3/09.

Go ahead. Blame Trump!
Read 19 tweets
Dec 4
This was 9 years ago this week.

He went on to say more hateful stuff in the coming years and to meet with Farrakhan, yet he was accepted as a regular part of society including being a big Hillary Clinton donor and performing at a DNC event.

It then got worse and worse. Image
12/16/13: Farrakhan says Kanye West does not owe Jews an apology.

2/1/15: Kanye West and KK visit Louis Farrakhan. ImageImage
Kanye West is a follower of Louis Farrakhan who years before privately meeting Senator Obama and other elected Dems had said that "Hitler was a very great man."

Farrakhan has a MASSIVE following among leading music artists, ball players and elected Dem officials. Image
Read 6 tweets

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