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Originally Posted by Richard Casto
Serious question. What does buying equity in an F1 team get you. For those who are trying to place a relative into the car, I get that. But otherwise, why do it? Especially if it is a minority share.
Richard
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I think most investors doing this are looking at adding value - they may bring business contacts/sponsors/other expertise, that add values to the team and then sell on . This was easier when there were plenty of buyers out there, but now as you say the returns are not there. Certainly they are not going to get rich on poor or no profits with little hope of large dividends.
Probably this fits the trend of investors looking for share price growth in business nowadays and then selling on. I believe that Uber, for example, in it's IPO on the NYSE a while back actually allegedly stated in the prospectus that is was unlikely to ever to make a profit.