Softbank’s ‘Valley of Coronavirus’
Softbank’s Vision Fund has split 75-billion-dollars between 88 start-ups, and its founder, Masa Son, is committed to a three-hundred-year investment horizon. You could say he’s under a tech-trance; he doesn’t diversify much. Uber, WeWork, and ARM remain Son’s biggest instinct picks, funded with the help of cheap debt and more solid stock stakes.
The coronavirus has left Son’s Vision Fund reeling. Softbank reported an $18 billion loss yesterday, a record. There’ll be plenty more crises like this for cyclical stocks over the next three-hundred-years, so investors better get used to the volatility.
The good news is that Softbank aspires to the highest quality investors relations. It’s commissioned deck designers to assemble a few slides to help guide investors through these uncertain times; check out slides 47-51!
Yes, that’s a horse with wings gliding past the “Valley of Coronavirus.” It’s safe to say, these slides are unusual. You can release stuff like this when you’re on top, but Softbank just marked down the value of its largest holding by 94%, citing a Microsoft Excel error, so it’s definitely not “on top.” The richest man in China, Jack Ma, has abandoned the idea of three-hundred-years on Softbank’s board. He stepped down last night!
Cult stocks die when followers feel betrayed by the actions of the leader. This is a founder comparing himself to a “misunderstood Jesus Christ,” and fresh off historic losses, not everyone is laughing. There’s a new hot trading strategy; short everything Masa touches. The Japanese investor needs to wrestle back respect, or see sentiment slide even further!