His net worth is inflated even by American standards where net worth is already insanely inflated.
A lot of times, company evaluation is calculated by being roughly 10x it’s yearly revenue. Alphabet, meta, all fit this. Space X is literally valued close to 100x
I listened to a podcast about this and according to that it’s more insidious; valuation companies are owned by the people who own the business to be valued, and similar types of corruption.
I mean, isn’t a company’s valuation decided by the company themselves? Rest, when market forces are controlled by private hedge funds, asset management companies, and retirement funds, I feel normal Market rationality cannot be assumed. Market ownership right now is highly concentrated in these entities, and they have all the incentives to keep these valuation up for the reasons you stated.
It’s interesting that the more you learn about the market the more it looks like a ponzi scheme😂
His net worth is inflated even by American standards where net worth is already insanely inflated.
A lot of times, company evaluation is calculated by being roughly 10x it’s yearly revenue. Alphabet, meta, all fit this. Space X is literally valued close to 100x
I listened to a podcast about this and according to that it’s more insidious; valuation companies are owned by the people who own the business to be valued, and similar types of corruption.
I mean, isn’t a company’s valuation decided by the company themselves? Rest, when market forces are controlled by private hedge funds, asset management companies, and retirement funds, I feel normal Market rationality cannot be assumed. Market ownership right now is highly concentrated in these entities, and they have all the incentives to keep these valuation up for the reasons you stated.
It’s interesting that the more you learn about the market the more it looks like a ponzi scheme😂