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This is circular logic and not really what I was getting at. Productive assets are valued based on expectations of future cash flows, independent of market val
by danhak 9y ago
This is circular logic and not really what I was getting at. Productive assets are valued based on expectations of future cash flows, independent of market value. You’re incorrect in saying the value of everything is determined by the market.
To quote Warren Buffett, “price is what you pay, value is what you get.”
- Cyberdog 9y agoIsn't the expectation of future cash flow factored into the current market value of something? I "overpay" for Apple laptops because I know I'll be able to quickly make my money back by doing productive things with them.