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Sure but that can be said of any speculative trader going long on an asset. It doesn't make it a bubble.
by amingilani 9y ago
Sure but that can be said of any speculative trader going long on an asset. It doesn't make it a bubble.
- frgtpsswrdlame 9y agoOf course, a bubble is something that popped so can only be defined post hoc. There's some good reasoning in this letter though.
- cm2187 9y agoYeah but an equity investment has intrinsic value. Either through future earning to which as a shareholder you are entitled or to the residual value of the company if you shut it down now. You can trade it in a speculative way, and if it starts to trade at a level that cannot be justified by its intrinsic value, then we are in bubble territory too.