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I've given up on valuing start ups. I've come to realize that I'm not that smart after I didn't agree with Facebooks valuation. These companies are worth what

I've given up on valuing start ups. I've come to realize that I'm not that smart after I didn't agree with Facebooks valuation. These companies are worth whatever the market/people agree to pay for it. It doesn't have to make rational sense. I've accepted this, because I don't argue when someone wants to pay $10 million for a painting because it's the only copy that exists and is a thousand years old. So why argue when it comes to the value of a company determined by the market? If the owner insisted that his company is worth that much, we might have a disagreement, but with the market saying Uber is worth $17 billion? $17 billion it is.

AnimalMuppet 12y ago
Come back in five years. You may find out that Facebook was not in fact worth as much as people thought. That doesn't mean that you were wrong (except in the very near term). And, if you aren't going to jump on the bandwagon based on the greater fool theory, then figuring out that the market is temporarily wrong is a good way to avoid losing a lot of money.
- contingencies 12y ago
  I came here to post Neither is Facebook but found this thread, instead. Basically, there's a lot of people tasked with finding places to invest money who need to look busy and the US - nay - the west - is pretty dry on real productive organizations right now. Software slash services has become the excuse for capitalism, and fundamentally we're just delaying the inevitable. Growth has stopped. Resources are finite. It's official.