Responding to a piece in the New York Times about bypassing Wall Street with investment dollars, AVC's Fred Wilson describes how he and his wife have abandoned Wall Street and have concentrated on investing in businesses they can feel, touch and understand:
We are in cash, real estate, venture capital, and private investments centered around our neighborhood and city (retail, restaurants, etc). Other than cash, we are invested in things we can touch and/or impact and understand.
As Ron talks about at the start of his piece, the never ending blowups on wall street are eroding confidence in that system. It certainly has eroded our confidence in that system. So we are staying out of it for the most part.…
And he describes a movement he calls Slow Money described in this way:
“Let’s just take some of our money and invest it near where we live in things we understand, starting with food,” as the movement’s founder, Woody Tasch, puts it. He describes returns as being in the “lowish single digits,” ranging from roughly 3 percent to a few percentage points higher…
As one system seems to be failing on a regular basis, it makes sense that there are new systems that operate differently that are emerging.
Wouldn't it be sweet justice if the titans of Wall Street were put in their place not by the toothless-so-far government regulators, but by the free market they so stridently defend but seem to only believe in if it's rigged in their favor?