Part 4/10:
The Rise and Fall of Companies and Fraudulent Schemes
Posis discusses how companies historically have enjoyed periods of success only to collapse under pressure or scandal. He references Elizabeth Holmes, founder of Theranos, who was once celebrated as a revolutionary entrepreneur with a billion-dollar valuation based on faulty technology. Holmes, once listed among Forbes’ youngest self-made female billionaires, faced fraud charges when her blood-testing technology proved to be a sham.
This analogy serves as a cautionary tale: even the most dominant companies or innovators can be involved in deception, yet markets can still drive their valuations sky-high until the truth emerges.