Joey @zSensy - Twitter Profile

zSensy retweeted

18 days ago

I asked Francis Hunt why market cap numbers feel less real to him every year. His answer stuck with me for the rest of the day. "Market cap is not a valuation of a business. There's a complete delusion in valuation. These trillions of numbers are vaporware." His point isn't that Amazon or any single stock is mispriced. It's what happens the moment more than a handful of people try to cash out at the same time: "If everybody is required to sell, there's not enough money in the world to actually facilitate the buying for that market cap to be realized. If Bezos aimed to sell everything that's allegedly in his name in Amazon, there isn't a market. That has to be privately placed." Think about what that actually means. The number on your portfolio screen isn't a guarantee, it's a price that holds only as long as most people never try to collect on it at once. It works exactly like a confidence game: everyone takes the last traded price as gospel, right up until the day the buyers simply aren't there. That's why, in his telling, so much real activity in size happens off the visible market entirely, OTC desks, dark pools, private placements, precisely because the public "valuation" doesn't survive contact with real selling pressure. His conclusion isn't that markets are fake. It's that the number you see and the money you could actually get out are two very different things, and most people only find out how different when it's too late to matter. Full conversation on @new_era_finance

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Joey

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