My fav topic to discuss. Intrinsic value. Lots of disagreements. Our definition is radically conservative. Assets w intrinsic value generate free cash flow at rest. Gold = none USD = none; 0 interest paid Btc = none All are spendable. But none retain value well.https://twitter.com/MustStopMurad/status/1038148545143087104 …
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The purpose of money is to be the most liquid good, having a balance of which allows you to decrease your anxiety about the uncertainty and unpredictability of the future. Monetary media are game-theoretically priced, because society needs a common medium of exchange.
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Intrinsic value doesn't exist. All value is subjective. Without exception.
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Cash collected monthly is objective. It has intrinsic value because it can be spent. Gold depreciates by its cost of storage. Currency suffers inflation. Real assets that appreciate in value and generate excess cash are intrinsically valued in a way others are not.
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This is total bullshit. No company/asset trades on DCF alone, looking at intrinsic metrics like price-to-book is not relevant in this environment.
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No one claimed such. I've explained our view of what intrinsic value is. We use it internally and it serves us well. We don't trade assets with intrinsic value, we hoard them.
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Real Assets are illiquid and have CF dependent on structural restriction on increased supply (rail cars, water rights,RE). BUT you’re assigning a probability the supply will remain restricted otherwise your cash returns decline, no? You’re also making a subjective judgement.
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There is a general truth about long-lived real assets -- supply is always shorter than demand. This truth is more extreme in times of stress.
End of conversation
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