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Motley Fool Hidden Gems Investing

Theranos & the Power of a Good Story

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 3 November 2020

⏱️ 2 minutes

🧾️ Download transcript

Summary

Theranos promised the world a breakthrough in blood-testing technology, until everything came crashing down in early 2018. Alex Gibney, director of the award-winning documentary The Inventor: Out For Blood In Silicon Valley, discusses Theranos founder Elizabeth Holmes’ talent for telling a story.   Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

With the monthly full money extra, I'm Chris Hill.

0:09.7

Elizabeth Holmes was compared to Thomas Edison and hailed as the next Steve Jobs.

0:15.3

She dropped out of Stanford at the age of 19 and started Theranos, a company touting a

0:20.2

break through blood testing technology.

0:23.6

At its peak, Theranos was worth $9 billion.

0:28.0

In early 2018, the SEC charged Elizabeth Holmes with fraud and the company's value dropped

0:34.0

to zero.

0:35.6

The rise in fall of Theranos and its founder is the subject of a documentary from Academy

0:40.6

Award-winning director Alex Gibney.

0:43.6

When we talked last year, Gibney reflected on how good Elizabeth Holmes was at telling

0:49.0

people a story.

0:51.0

Even when that story was a lie.

0:53.2

What surprised me really was how effective she was, how many people fell for it, and how

1:01.6

often when it came to a tipping point, all Elizabeth had to do was to talk to them and

1:09.0

people would be convinced Tyler Schultz himself talks about it.

1:12.9

Like he knew how bad things were in the lab, what he called the tile world.

1:16.7

And then he would go up to the carpeted world and have a conversation with Elizabeth and

1:20.5

she would just convince him.

1:22.2

And she'd convinced his grandfather to basically doubt his own grandson.

1:27.3

That's, you know, so you realize the power of storytelling, how effective it can be,

1:38.0

despite all the evidence.

1:39.9

The trial of Elizabeth Holmes is set to begin in March of next year.

...

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