2 ms·

> The market is pricing in future growth. Does that answer the question, though? Future growth is an estimate and approximation, is not real, and says nothing

• zamadatix 3y ago
  What you get paid for isn't realized gains rather selling your future gains at a rate lower than others (i.e. the market) expects them to actual be worth. If the question is about how this makes sense then sure, it answers the question - you're selling your future gains now to fund the company which means the current value of your shares will reflect that future predicted value as well. If the question is "why without involving any future possibilities" then no, it doesn't answer the question, but I'm not sure the question makes any more sense than "why is the sun so hot ignoring fusion". Another way to think of it is if I spent 10 billion to make a company which now successfully produces gold bricks from wood in a way most think I'll be historically net positive in 5 years then it's not really a mystery why waiting 5 years for the number to hit 0 is not particularly relevant to when people may be interested in buying parts of the company.
• wddkcs 3y ago
  It's the assumption of Capitalism that markets are the most fair pricing mechanism. I'd love to see that proven untrue