Ten years ago, much to everyone’s surprise, tech giant Microsoft’s took a 1.6% stake in a young Web 2.0 company. It paid US$240 million in 2007 which valued the startup at what was then an eye-popping $15 billion. You may have now heard of the company. It was Facebook, and it is now of course worth more than $500 billion and is among the world’s most important organizations. The investment is now considered among Microsoft’s smartest plays. But though such deals seem like no-brainers in retrospect, in truth they were calculated risks predicated on trust: in the company, in the vision, and in the people. And it is trust that underpins so many financial decisions both big and small — everything from a retail investor’s choice to jump in on a stock, all the way up to a Fortune 500 company making a big play.
Click here to read more