The Silicon Valley Ecosystem Now: Investing or Gambling?

I just read an article expressing Sean Parker’s opinion about an impending bubble in the Valley. Not sure why he posted it on his Facebook page (which I subscribe to) two weeks after it was published. Or perhaps it could be the result of the heightened chatter on the Web today of the Facebook IPO which could be valued at $100 Billion. Anyway, it brings up questions that anyone can ask themselves when they think they are making a good decision for a favorable monetary outcome. One of Mr. Parker’s assertions is that because there is so much money floating around, the talent is not playing the correct function on the team. So when making an investment are you approaching the right people to get the best possible advice? You may have access to a lot of talented people but how do you know who exactly is the best equipped to handle your specific objectives. Are they the right match? If you don’t know that you don’t know you are talking to the wrong people, then are you gambling?

Secondly, Mr. Parker asserts that there is a strong sense of entitlement to just be a player at the table and throw money at a project without considering whether certain elements are fully baked. Put simply, is your ego driving you to make decisions which are not based on logic or analysis? As human beings is it possible to make any investment decision without an emotional dent? When does investing become gambling?

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