3 ms·
I have this theory, supported by anecdote alone. In the US there is a "scam premium". The scammier a business, the higher the multiple. Fabbing is decidedly
by rmrfstar 6y ago
I have this theory, supported by anecdote alone.
In the US there is a "scam premium". The scammier a business, the higher the multiple.
Fabbing is decidedly unscammy. So according to the theory of scam premiums, everything associated with fabbing should trade at a discount.
- supernova87a 6y agoWell, maybe another way to put it is that it's a business where the costs and value are absolutely clear. And it's a pure physics/technology catchup business. So margins get competed very thin. Versus what you call "scammy" industries, where people attach emotional value, social value, network effects, irrational likes/dislikes -- there's a lot of margin that can be milked out of stuff like that.
- deleted 6y ago[deleted]
- deleted 6y ago[deleted]