There’s an amazing podcast series called “The Dropout.”
Created and hosted by Rebecca Jarvis, ABC News Correspondent for Business, Technology & Economics, “The Dropout” investigates the bizarre story of Elizabeth Holmes, founder of the medical startup company, Theranos.
Holmes dropped out of Stanford University at 19 to start a blood-testing startup, Theranos, and grew the company to a valuation of $9 billion. Her revolutionary idea was to develop a system that would take blood without the usual hassle of a nurse poking your arm while trying to find a vein.
Of course, everyone was excited by the prospect. And unsurprisingly, because Holmes was passionate and charismatic, she had a line of eager investors.
Only one problem.
It was all a lie.
Throughout the company’s history, it became apparent that anyone who asked too many questions was a threat and fired. Investors were given vague information regarding the product development without any proof. And lofty claims were simply accepted because people were afraid of Holmes.
It’s an incredible story. Even Walgreens believed it. They sunk $140 million into creating “Wellness Centers” for Theranos.
The house of cards came crashing down when the company’s shortcomings and inaccuracies surfaced. A few brave whistleblowers came forward and the company’s massive fraud was exposed. Today Holmes is facing trial in 2021 and if convicted, could face 20 years in prison.
The question most people ask is, how could it have gotten so bad?
How could relatively intelligent, influential men and women get sucked into believing a fantasy?
It’s a good question for psychologists, but the bottom line is that people want to believe in good things. They want to believe anything is possible. And when presented with facts that conflict with those desires, some go into denial.
It’s an excellent podcast with just five episodes, but almost plays out like a Tom Clancy novel. Secrets, betrayal, tragedy, money… common themes for any good suspense story.
That’s not us, though. We do our due diligence and encourage our clients also to do the same. When it comes to investments, we’re an open book. No side-stepping or secret meetings. We tell you everything we know so you can make the right financial choice for you and your family.
If we haven’t had a conversation yet about your financial future, now is the perfect time to schedule it. Call us today at 513-563-PLAN (7526) or book online for a no-obligation 15-minute phone call.
Regards,
Nikki Earley, CFP®
