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Matt Levine

Unicorns Aren't So Beloved Anymore

You don't need a public market to have a market price.

The way a bubble works is, people get enthusiastic about a thing, so they buy a lot of it, and its price goes up.  Then people realize the price is too high, so they sell a lot of it, and the price goes down. All of your favorite market things -- supply and demand, buyers and sellers, the price mechanism -- get a workout. It is a good time, unless you bought the thing near the top.

Today's Wall Street Journal has a terrific story about how mutual funds that bought stakes in large closely held technology companies are now writing down some of those stakes: