Matt Levine’s Money Stuff: First Brands Is Missing Some Money

First Brands

It is helpful, in investing, to be able to amortize a certain amount of work over a lot of capital. If someone offers you an opportunity to invest in a company with an expected return of 30% annualized, that is pretty good, and you might be willing to take the meeting and do some due diligence and sign the contracts and wire the money and do all the intellectual and administrative work to get that return. But if the company is a lemonade stand and your investment is capped at $20, that 30% return will not be very exciting. ...