Yes, diversification is smart. But you're trying to use this general idea to explain a specific decision that is clearly a matter of timing.
You could claim that everytime an insider at any company sells the majority of his stock he is diversifying. But that's not really looking at what the real reason is. There is a reason that "now" is the "time to diversify". And it's not just because diverisification is generally smart investing.
I guess Facebook represents something for a lot of HN commenters. When Facebook starts it's decline it signifies some larger problem.
It was a tremendous success, some people made many millions from Facebook. So what's the problem if the fad dies down and it all goes south eventually?
"So while the timing may look ugly, Thiel has been with Facebook since [2004] nearly the beginning of the company’s eight-year slog towards going public. It’s not anathema to cash out — especially at an 800x return."
You could claim that everytime an insider at any company sells the majority of his stock he is diversifying. But that's not really looking at what the real reason is. There is a reason that "now" is the "time to diversify". And it's not just because diverisification is generally smart investing.
I guess Facebook represents something for a lot of HN commenters. When Facebook starts it's decline it signifies some larger problem.
It was a tremendous success, some people made many millions from Facebook. So what's the problem if the fad dies down and it all goes south eventually?