<story><title>Lawsuit against Meta invokes modern portfolio theory to protect shareholders</title><url>https://corpgov.law.harvard.edu/2022/11/04/lawsuit-against-meta-invokes-modern-portfolio-theory-to-protect-diversified-shareholders/</url></story><parent_chain><item><author>anigbrowl</author><text>Anyone who invested in Facebook directly (rather than via a managed or exchange-traded fund of some sort) did so with the expected awareness that all the voting stock was controlled by Zuckerberg personally. Effectively, FB is a corporate dictatorship and it&amp;#x27;s hard to have sympathy for people who put money into it during the good times and are now surprised to discover that they made a bad investment decision.&lt;p&gt;&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.morningstar.com&amp;#x2F;articles&amp;#x2F;1061237&amp;#x2F;how-facebook-silences-its-investors&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.morningstar.com&amp;#x2F;articles&amp;#x2F;1061237&amp;#x2F;how-facebook-si...&lt;/a&gt;&lt;p&gt;Suing Zuckerberg on the basis that FB has made the world a worse place is one thing, suing him on the basis that a corporate dictatorship has disrupted their portfolio is a joke. They&amp;#x27;d be better off suing the SEC or FTC for failure to regulate effectively.</text></item></parent_chain><comment><author>cassonmars</author><text>It’s not even clear yet whether this has been a bad investment decision. Zuckerberg is playing a long game here, and the market is notoriously short-term, immediate-profits-driven. Long term investors may actually be quite pleased if this strategy turns out to be generation-defining. Obviously no person can say this with certainty, but they can see his track record — he’s gone against the grain on many occasions, at the peril of short term holders, only to dramatically increase the overall profits of the company exponentially.</text></comment>
<story><title>Lawsuit against Meta invokes modern portfolio theory to protect shareholders</title><url>https://corpgov.law.harvard.edu/2022/11/04/lawsuit-against-meta-invokes-modern-portfolio-theory-to-protect-diversified-shareholders/</url></story><parent_chain><item><author>anigbrowl</author><text>Anyone who invested in Facebook directly (rather than via a managed or exchange-traded fund of some sort) did so with the expected awareness that all the voting stock was controlled by Zuckerberg personally. Effectively, FB is a corporate dictatorship and it&amp;#x27;s hard to have sympathy for people who put money into it during the good times and are now surprised to discover that they made a bad investment decision.&lt;p&gt;&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;www.morningstar.com&amp;#x2F;articles&amp;#x2F;1061237&amp;#x2F;how-facebook-silences-its-investors&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;www.morningstar.com&amp;#x2F;articles&amp;#x2F;1061237&amp;#x2F;how-facebook-si...&lt;/a&gt;&lt;p&gt;Suing Zuckerberg on the basis that FB has made the world a worse place is one thing, suing him on the basis that a corporate dictatorship has disrupted their portfolio is a joke. They&amp;#x27;d be better off suing the SEC or FTC for failure to regulate effectively.</text></item></parent_chain><comment><author>jameshart</author><text>“We never expected the leopards to eat our faces!” say investors in Face-Eating-Leopards inc.&lt;p&gt;Basically this is investors saying they are concerned that they are having to bear some of the externalized costs of Facebook’s business.&lt;p&gt;Traditionally, businesses have been more careful to target those externalities at folks in the third world, or at the very least in poor parts of the state, and avoided impacting the investing classes.</text></comment>