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A single bad IPO from that list of firms (Which will likely happen in a climate of pessimism, even if we don't hit a recession) will be disastrous to their aggregate valuation, even if they stay private.

I feel that the only way Sam will win the bet is if none of the firms in #1 or #2 will IPO between now and 2020.




True, but conversely, one standout that does well could alone hit the target. If you believe that the successful companies follow a power law distribution, you'd expect something like that.


That would be the case if valuations were independent of each-other (Which is a bit of a stretch even in a truly efficient market, like the NYSE.)

On the other hand if, say, AirBnB and Palantir have a dismal IPO in 2018, that will likely bring valuations down across the board.




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