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there is some truth to the idea that midwest investors are more conservative, but fundamentally businesses exist to deliver earnings. Sure, when they are not p
by vasilipupkin 11y ago
there is some truth to the idea that midwest investors are more conservative, but fundamentally businesses exist to deliver earnings. Sure, when they are not profitable and are growing their revenues really fast, this may be an indication of future high earnings - but as soon as that growth rate comes down, so does the valuation. It's a mathematical fact which has little to do with geographical location of investors
- phamilton 11y agoI think there's a lot of ambiguity in valuation. P/E for a public company is very much a matter of confidence and perception. Culturally, different groups will perceive a company in different ways. The same group will perceive similar companies differently. It's all over the map. In public markets things stabilize to a common view. That's the effect of liquidity. But private markets without that liquidity can have divergent investor perception.