We talk about smart money and dumb money. Lately I've been calling this stuff "weird money."
I've been hearing a lot of weird stories about weird money in the last few years. My favorite involved an investor who could not be located when the company was sold. Phone was disconnected, company did not exist, etc. Not sure how that shook out. Maybe the proceeds get held in escrow for a while and then distributed to the other investors if the owner never shows?
It sounds weird, but companies trying to expand to areas they don't have experience in is nothing new. There are other unique incentives in play right now, but they aren't particularly crazy.
Imagine your company is about to be on the ugly end of major changes to economic policy in your country. You still have access to credit, so you may consider buying another business. You want to hedge against currency risk, so you buy a company in another country whose currency you think will do ok. Also, you need a purchase that is big enough to matter and you need to do it quickly.
If the finances are right, and the business metrics of the acquired company doesn't decline too quickly you may make out pretty well.
Any other examples you can link to stories on? I love this sort of thing too. The best ones are instances where there is a logical and sometimes very smart reasons behind things that don't make any sense on the surface until the outcome is revealed at the end. I think that's why I'm hooked on the show Billions.
I've been hearing a lot of weird stories about weird money in the last few years. My favorite involved an investor who could not be located when the company was sold. Phone was disconnected, company did not exist, etc. Not sure how that shook out. Maybe the proceeds get held in escrow for a while and then distributed to the other investors if the owner never shows?