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>Market cap is kind of made up. For a public company, it's all about return on investment, right? Market cap is the most important factor in return on investme
by aurareturn 2y ago
>Market cap is kind of made up.
For a public company, it's all about return on investment, right? Market cap is the most important factor in return on investment right? Therefore, market cap is the most important measure.
- tjoff 2y agoOh, I should only invest in companies with the biggest market caps?
- aurareturn 2y agoSure, if you think they can increase their market caps by the highest percentage and have enough liquidity for you to exit if you wish.
- deleted 2y ago[deleted]
- basiccalendar74 2y agoyou invest in companies that would be biggest market cap in future.
- diffeomorphism 2y ago> Market cap is the most important factor in return on investment right? Completely wrong. Hint: You are on HN. Startups obviously don't start at a large market cap.
- aurareturn 2y agoI'm not wrong. You just interpreted me wrong. I didn't say you should invest in companies already with a big market cap. I said market cap increasing is the ROI to investors (besides dividends, which is mostly irrelevant when investing in tech companies). That's exactly how startups work. You invest at a cap of $50m. Its market cap increases to $1 billion. You just made 20x (provided you have liquidity).