5 Lessons for Investors from Silicon Valley Bank’s Collapse

In Ernest Hemingway’s classic 1926 novel, The Sun Also Rises, Bill Gorton asks Mike Campbell, “How did you go bankrupt?” Campbell replies, “Two ways. Gradually, then suddenly.” That’s what happened recently with Silicon Valley Bank (SVB), and its parent SVB Financial Group. With over $200 billion in assets, it was the sixteenth-largest U.S. bank before its collapse on March 10, 2023. The 40-year old company became the second-largest U.S. bank failure, behind Washington Mutual, which had an asset base of just over $300 billion at the time of its collapse in 2008 during the Financial Crisis. What went wrong? And how could common sense investing practices have prevented SVB’s failure? <a href="https://sfoerster-5338.medium.com/5-lessons-for-investors-from-silicon-valley-banks-collapse-39afe9cadad7">Read More</a>