Economic Feeding Frenzy!
Dave Killion — February 26, 2012
This clip features Kevin O’Leary from the ABC show Shark Tank. I first heard of the program from a post at the Mises blog back in July, but never watched it until EconLog’s David Henderson discussed the show last week. I have since been watching one episode after another, and enjoying it very much. The premise is that entrepreneurs get to pitch their ideas to a panel of five wealthy investors, who then grill the candidate for relevant details. The results range from rejection and ridicule to bidding wars between the investors. The show is a gripping demonstration of capitalism in action, and to call the format a success would be an understatement – there is some version of Shark Tank in each of 22 different countries, including Canada.
Watching the show, it struck me that all the investors give much less weight to potential than I would expect. Several times I have seen what I think a brilliant idea, only to see the Sharks reject it based on what they perceive as inadequate performance to date. I suppose experience has taught them to calculate the risks they take very carefully. But I calculate the risk that you will not enjoy Shark Tank to be very small, so by all means, invest a little time.
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