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The market valuation of a company ($N trillion) is not a measure of the assets that company has. The real estate may be 2% of their market cap but a much greate
by olliej 4y ago
The market valuation of a company ($N trillion) is not a measure of the assets that company has. The real estate may be 2% of their market cap but a much greater proportion of their actual assets.
Don’t get me wrong it’s all still BS though :)
- reducesuffering 4y agoSure, but it doesn't make any difference. If your $1T valuation is based on your income, and a move will +5% your valuation but -50% your physical assets from $20B to $10B, that company should still make that move.
- olliej 4y agoA company's decisions should be made based on ROI, profit margins, etc - not the impact on share price. Companies making decisions to aid short term market valuations at the cost of long term success is a canonical example of bad management in publicly traded companies.