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| ▲ | wrs 6 hours ago | parent | next [-] |
| On the contrary, you would be demonstrating that, to at least one buyer, it was worth that. By definition. I think the argument you’re really looking to contradict is this: if 1% of a company is worth $1B to somebody, then somebody would pay $100B for the whole company. That does not follow (and indeed the acquisition price of a company is almost never exactly its “market valuation”). |
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| ▲ | paxys 5 hours ago | parent | next [-] | | > and indeed the acquisition price of a company is almost never exactly its “market valuation” The acquisition price is almost always significantly more than its market value. The reason is that if you start buying shares on the open market each transaction of yours will raise the stock price, and eventually you will price yourself out of the purchase. So what buyers do is negotiate directly with the board and propose an inflated price that >50% of shareholders are okay with. | |
| ▲ | watutalkinbout 6 hours ago | parent | prev [-] | | No. You are assuming that the money that I buy the sweet shop for is what I evaluate the value of the sweet shop to be worth. That's not necessarily true. You're also assuming I'm not insane. If I offer to buy an apple from you for 1 trillion dollars because I believe consuming that specific apple will make me a god, that apple is not actually worth 1 trillion dollars. | | |
| ▲ | paxys 6 hours ago | parent [-] | | Items don’t have an inherent “worth”. If I have an apple and you agree to buy it for $1T, then the apple is indeed worth $1T at that moment. After the purchase is complete it is worth ~$0, or whatever the next person is willing to pay you for it. Alternatively you can say “it is still worth $1T to me” and that would be true as well. When we are specifically talking about companies, their value is where buyers meet sellers in the order book. | | |
| ▲ | watutalkinbout 6 hours ago | parent [-] | | What if I say, "it's not worth $1T to me but I'm doing it for the memes" Are you selling me just the apple? |
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| ▲ | browningstreet 6 hours ago | parent | prev | next [-] |
| Real world example: someone just bought the first Ferrari Luce EV for $40M. Obv $600K starting price for that model was low! https://www.reuters.com/business/autos-transportation/ferrar... |
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| ▲ | onraglanroad 6 hours ago | parent | prev | next [-] |
| Yes it's literally what it means. It was worth that to you (even if just to prove a point). What else does worth mean? |
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| ▲ | watutalkinbout 6 hours ago | parent [-] | | Okay. I buy a sweetshop for 1 billion dollars. Now, immediately after I have bought it, what's it worth? | | |
| ▲ | magicalhippo 4 hours ago | parent | next [-] | | > Now, immediately after I have bought it, what's it worth? Is a buyer asking to buy it? If yes, whatever you sell it for. If no, then you really have no idea what it's worth now, all you know is it was worth 1B to you when you bought it. | |
| ▲ | satvikpendem 5 hours ago | parent | prev [-] | | What the next person would buy it for. Maybe you buy it for the memes but it doesn't mean another would afterwards. | | |
| ▲ | watutalkinbout 5 hours ago | parent [-] | | So if I bought it for the memes, the shop itself wasn't worth $1 billion. I could have bought bike shop, or an apple. That value wasn't associated with that specific item. It's an arbitrary choice. | | |
| ▲ | satvikpendem 5 hours ago | parent [-] | | It was actually, because value is defined as such. Why do you think buying something for the memes is worth less? Like what mechanism exactly makes it worth less? Seems like that's the fundamental misunderstanding you're having in your comments with others in this thread. | | |
| ▲ | watutalkinbout 5 hours ago | parent [-] | | I guess it depends on your definition. The issue is that buying something for the memes isnt worth less, it's 'what you are actually buying'?. If I arbitarily decide to buy an apple for $10 that I could have bought for $1, what did I actually buy with the $9. Publicity? Goodwill? I don't believe I only bought an apple, even from the person I bought it from. |
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| ▲ | Razengan 6 hours ago | parent | prev [-] |
| and just what the fuck is ""worth"" anyway |
