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“Securities” podcast host Danny Crichton and producer Chris Gates talk about the latest newsletter issue, “Truth and reputations.”

Reputations are always a trailing indicator of truth. When people and organizations are rising, reputations obviously lag — the public has never heard of these new upstarts, and its opinion remains unformed. Reputations gallop to catch up, and for a brief moment perhaps, the true quality and the perceived quality intersect. Inevitably decline sets in, whether in an individual’s career or in an organization’s penchant for adding listless bureaucracy and complexity. The public reputation remains robust, but the underlying quality has etiolated. Perception has now overshot truth.

Last week, we saw three stories that illuminate the dynamics of truth versus perception: Adam Neumann’s $350 million fundraise for Flow; SoftBank’s historic quarterly loss and Masayoshi Son’s investment acumen; and then, the CDC director’s call for a complete reform of her beleaguered agency.

We talk about these three stories, plus a Lux Recommends article.

Where does reputation end and the truth begin?