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Good questions ! In a sense, the whole world is leveraged now. We can monetize everything. If you want to understand a bit about finance Matt Levine newsletter
by TheAlchemist 2y ago
Good questions !
In a sense, the whole world is leveraged now. We can monetize everything. If you want to understand a bit about finance Matt Levine newsletter is excellent.
He talked about how a singer can be a billionaire in today's world. Just calculate the present value of his future expected revenues, and sell a portion of it. A company of 1.
Re your question - if Musk or Bezos decided to liquidate their holdings, both stocks would crash, but probably not in the same proportion.
Amazon is a very established business with big, consistent profit and while it's valuation is high, it's not outrageous. Tesla on the other hand, has 99% of it's valuation derived from future promises and Musk's personality. If he was to sell a significant part, the stock would crater 90% (and mind you, if it craters 90% it would still be worth more than Ford and GM combined !).