Venture firms traditionally succeed by taking ownership stakes in companies with low capital requirements and sufficient risk to provide a 10X returnoninvestment within 10 years.
Though it said the market's enthusiasm for Facebook isn't out of line, Morningstar cited several near-term challenges facing the company, including regulatory risk, privacy concerns and visibility into advertising returnoninvestment.
In this case, low tax rates are creating a disincentive to take oninvestmentrisk and is allowing my friend to play golf rather than return to the work force.