Everyone is talking about a ‘recession’, but it is the long boom that we should be talking about.
This week WeWork filed for an IPO…the latest poster child for ‘The Long Boom’.
The best take on WeWork is from Professor Galloway titled WeWTF.
You must read the whole thing and then please recommend the stock to the family member you dislike most.
The opening sets the tone:
In frothy markets, it’s easy to enter into a consensual hallucination, with investors and markets, that you’re creating value. And it’s easy to wallpaper over the shortcomings of the business with a bull market’s halcyon: cheap capital. WeWork has brought new meaning to the word wallpaper. This is more reminiscent of the cheap marbled panelling you’d find in Mike Brady’s home office — panelling whose mucilaginous coating will dissipate at the first whiff of a recession, revealing a family of raccoons or the mummified corpses of drug mules.
I personally think WeWork has a lot of genius. The product, the timing, the ambition and the speed of scale is/was impressive.
The S-1 is the reminder of the mess that is left in the rear view when you move fast and nobody is really watching.
I think I will stick to buying Apple on the dips for now.