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Are there any notable recent examples of international investment gone wrong?

Williams Rosina

Sure, there are plenty of examples of international investment gone wrong in recent years. One of the most notable ones is the case of WeWork, a co-working company that became one of the highest-valued startups in the world before crashing down in 2019.

WeWork was founded in 2010 and quickly grew into a massive empire with locations in over 100 cities worldwide. The company relied heavily on venture capital funding and was seen as a disruptor in the real estate industry, offering flexible leases and a shared office space model that appealed to startups and freelancers.

However, it all came crashing down in the summer of 2019 when WeWork filed for an initial public offering (IPO) and its financials were unveiled. It turned out that the company was losing billions of dollars a year and had a debt load of over $18 billion. Its charismatic founder and CEO, Adam Neumann, was also accused of self-dealing and questionable business practices.

WeWork's IPO was ultimately cancelled, and the company was forced to lay off thousands of employees and sell off assets to stay afloat. Its valuation plummeted from $47 billion to less than $10 billion, leaving many investors with huge losses.

Another example of international investment gone wrong is the case of Valeant Pharmaceuticals, a Canadian company that was once one of the fastest-growing pharmaceutical giants in the world.

Valeant grew rapidly through a series of acquisitions, including the purchase of Bausch & Lomb in 2013 for $8.7 billion. However, the company's aggressive pricing and cost-cutting strategies drew scrutiny from regulators and investors alike.

In 2015, Valeant's stock price began to plummet as concerns over its business practices and accounting irregularities came to light. The company was also accused of price gouging on several of its drugs, including a heart medication that saw its price raised by over 5000%.

Valeant's downfall was swift and devastating. Its stock price fell from over $260 per share to less than $10 per share in just two years, and it was forced to divest itself of several key assets to raise cash.

These are just two examples of international investment gone wrong, but there are countless others out there. The lesson to be learned is that high valuations and fast growth aren't necessarily indicative of long-term success, and it's important for investors to do their due diligence and look beyond the hype before putting their money into a company.