@Theriaultfive@Convertbond@BearTrapsReport If people only pay what they think a company is worth and sell when it’s above that value then things stay balanced. There are always excesses in both directions.
@Theriaultfive@Convertbond@BearTrapsReport Say I have a lemonade company that I started for free and I want to sell half (one of two shares) of it for $5. One guy will pay $2 - that makes my other half worth $2 and so total $4. But another bidder just offered $10 - now my half is worth $10 and the company is worth $20.
@DilksJay A simple ratio of the two says Berkshire has been outperforming since 2016, by more than 100%! MKL outperformed from 91’-07’ and 08’-16’ but it’s been awhile.
@mark_ungewitter Wait so you’re telling me the market has 53% odds of going up Monday and being slightly flat/up/or down 2 months later -OR- 47% odds of absolute catastrophe over the next 2 months?
@Theriaultfive@Convertbond@BearTrapsReport The amount of capital invested is never going to be as big as the valuation. Say I have $1 and invest in a company that has 9 holders but is worth $3. My investment raises the value to $10. The company might make $3.30 a year profit too. After 3 years it made my money back.
@mlorke1004@karl_anon2 The fall of the eastern bloc led to massive economic tailwinds for nations inside of the eastern bloc but also ones with close proximity and, more notably, the closest economic ties.
@kanutopian@skyiszen@jel0we I checked it before I posted, they claim nuclear byproduct. For that you need equal amounts of mercury. You cannot simply put 2 tons of mercury into reactor and expect gold on the other side I’m sorry, not even close to plausible. I stand by my energy comments.
@JMJHYPM@carlquintanilla Spreads. Though today, spreads tightened vs short term treasuries (good sign). Spreads continue to widen vs long term rates so the problem is not resolved BUT ALSO risk return on capital. If you can get guaranteed 16% for CRWV bonds why buy the stock?