@WBuffetttt, I think that abandoning the equity market as an...

@WBuffetttt,

I think that abandoning the equity market as an asset class for investment is a bit of an over-reaction.

There are a number of wonderful businesses that create untold wealth for their owners and many that have great prospects for ongoing wealth creation. I include NEA in that category.

It's just that when we buy stock in a company, I believe we shouldn't just view that as merely owning a squiggle on a share price chart. Instead, I believe we should view it as being a part business owner, and should expect our business to pursue best practice and to treat all stakeholders - employees, suppliers, customer, shareholders, authorities - with best endeavours.

And, to the extent that we can, we should engage with the managers of our companies (after all, they do represent, and work for, the owners of the business) to encourage them do do things better...whether it be in competitiveness, innovation, governance, sustainability, social and environmental responsibility, etc.

So I don't think the NEA issue is terminal; rather, I think it is a young company will immature corporate governance experience, which results at times in sub-par practices, and that shareholder expectations of "as-business-owners-we-would-like-you-to-do-it-better" should be articulated to the board in order for standards to be raised.

And raised standards are good for long-term business sustainability.
Which, one would think, would be a desire of all shareholders.

The reason there are far less corporate calamities these days is because constructive shareholder activism has resulted in greater disclosure and transparency and has held company executives to account.

Fortunately, the days of boards of directors being cosy boys' clubs, are over.

But there is always room for improvement.

But I don't think you should allow the NEA experience tarnish you entire view of equity investing.

Because, as I say, investing in the right companies listed on the equity market, is a prolific wealth generator. Bar none.