Lewis tried to defend Sam by comparing him to Bernie Madoff, arguing that FTX at least had a real business. Reputable venture investors, media outlets, and author Michael Lewis all fell for the billionaire wunderkind and his effective altruism trope. Take Sam Bankman-Fried, founder of FTX and recently found guilty of fraud, whose case illustrates both issues. Style drift into a game in which the investor has no edge.Ī lack of awareness of risks at all levels of the game. Mistakes meeting overconfidence and concentration.Ī failure to correct mistakes or adapt to change.Ī lack of resilience due to leverage or fragile capital structure.
Why is enduring success in markets rare? I’ve written before about the usual suspects :
