Comment Re: wish in one hand and spit in the other (Score 1) 70
What no one is saying is that the same is true of much of the stock market. People buy stock not to get a share of the companies earnings but as speculation on its future price.
That isn't something nobody talks about, it's widely known everything is worth whatever someone else is willing to pay for it, and a share price is decoupled from a company's value. It breaks down when you buy someone's $1 for $10. You don't raise the value of a dollar, you gave someone your money.
I'm sorry dude but this isn't like assessing the value a piece of art. You can slap a banana on a wall and sell it for a million dollars. We can debate the value of bragging rights and publicity stunts all day. But if you have a lemonade stand that nets $100 a week with no liabilities, no cash, no holdings. That's dollars to dollars. We can speculate on the future value, like the demand for lemonade or population growth or hostile takeover and replace the management, whatever, but there's some math there that's hard to ignore. It's not worth more than this, it's not worth more than that.
Yes you can entirely ignore the math, you could bid the share price up to a market cap of a million dollars for a $100 a week, with no reasonable expectation of revenue ever changing. It doesn't change the fundamental fact that dollars to dollars, it has a real value of $100*X+Y. That total divided by shares equals a fair price, and we can debate X ALLL day, but it's not the same as assessing a banana on a wall, or the even more worthless bitcoin.
