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Everyone is really doing this. GAAP allows for this. Making value out of hot air. Generating paper profits through re-valuation of assets, especially intangible
by chewz 7y ago
Everyone is really doing this. GAAP allows for this. Making value out of hot air. Generating paper profits through re-valuation of assets, especially intangible assets or where there is no mark-to-market.
Softbank had been a little bit more creative then usual (arranging large loans to founders to lead another round of financing) I must admit.
At some point the music stops and then you have a quarter or two of really funny quarterly reports where everyone is taking all skeletons in the closet and repricing them down "due to unpredictable external factors like recession in Botswana or extreme solar activity". And then the game continues.
- scotth 7y agoInteresting. Where can I read more?
- chewz 7y agoReading company reports. Personally I had been lucky gossiping for years with a friend of mine who is reading and analyzing company reports in professional capacity. And never tired of discussing latest findings over a drink. He also has a column in a newspaper and lectures on accounting tricks and frauds at economic university. He always jokes that he only shows old tricks to his students and keeps the best bits to himself. Accounting tricks is also an arms race of sorts apparently.