My Dummest Investment Ever – Cars Direct

Posted by Howard
on October 29th, 2006

Michael Arrington wrote a piece about his Cars Direct experience and gave it a positive review.

This Company needs a lot more than positive reviews to make it’s “Bubble” investors back any money.

I am always attacking when I hear the blogosphere talk about a Web 2.0 Bubble. It’s like Robert Shaw comparing shark scars with Richard Dreyfuss in “Jaws”. Please…

The years 1999 and 2000 were bubbles. Cars Direct raising $1 billion – before getting public – to sell cars at negative gross margins…IS A BUBBLE. Lowly hedge fund pisser me feeling priviledged to get shares in their Q round offering… IS A BUBBLE.

Obviously, the Company has somehow built a business model – but give me a billion dollars and I will too.

Today’s startups will never be given that luxury.

I hope to see a part of my investment back, but even if I make money (NOT HAPPENING) – it was a stupid investment and a lasting investing scar that never heals but should (did) make you smarter.

I would love the money back though :) .

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.