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To put it another way, if you think medallions are worth X but their market price is only Y (Y < X) then you should buy them for Y+1. If markets have significan
by maverick_iceman 10y ago
To put it another way, if you think medallions are worth X but their market price is only Y (Y < X) then you should buy them for Y+1. If markets have significantly discounted their true price you'll make a windfall.
- fennecfoxen 10y agoOnly if Y+1 is likely to turn into X faster than Y+1 earns a normal economic rate of return plus a premium for the added risk. Opportunity cost, the time value of money, and the price of dealing with risk conspire to make a lot of schemes that look good on paper not really worth it.