Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Taking money off the table

zachholman.com

Post reply on HN
Print view View original

21–30 of 114 posts

Re: Taking money off the table

#21

Post by wat10000 »

nachox999 wrote: post #9

I believe the complete opposite. If someone is willing to buy your business, no matter the amount, it’s because it’s worth MUCH more than what they’re paying. It’s illogical for them to pay less than its real value. It’s even illogical to think they’d pay exactly what it’s worth. Why would somebody bother buying a company if they were only going to break even?

The reason anybody is willing to buy and sell anything is because there's no single "real value" of anything. Value is contextual. When the grocery store gives me a cake in exchange for $20, it's because the value of the cake, to them, is less than $20. Conversely, the value of the cake to me is more than $20, otherwise I wouldn't be buying it.

If you sell your business, it's because the value of the business to you is less than the purchase price. Likewise, the value to the buyer is greater than the purchase price.

Re: Taking money off the table

#22

Post by nachox999 »

pton_xd wrote: post #19
nachox999 wrote: post #17

Earlier quoted context omitted.

what I'm saying is the buyers are subject to the same risks, I'm not ignoring them

But obviously an investor with $XYZ under management that can make N bets is better equipped to handle that risk than you, an individual with 1 bet.

fair point :)

Re: Taking money off the table

#24

Post by apsurd »

nonethewiser wrote: post #18

[flagged]

Why do you feel the need to talk about how people talk?

And now you got me doing it lol. It's just something to do. we're all doing it. chill.

and now you're stuck cuz if you respond to me, well is it jut an inferiority complex, need to be right?

Re: Taking money off the table

#25

Post by toomuchtodo »

mason55 wrote: post #7

A 10% tender offer isn't really an interesting discussion. You should take definitely take 10% off the table unless you're already pretty wealthy. The interesting discussion is how much you should take off the table if the offer is uncapped.

> The interesting discussion is how much you should take off the table if the offer is uncapped.

50% for security, let the remaining 50% run. We can spend countless hours modeling the risk and return delta of various percentages and against non correlated asset classes you might diversify into once liquid, but most of life is luck; you can do everything right and still lose. This makes it easy, imho.

(not investing advice, just a rando, n=1)

Edit: noir_lord indeed! Good eye. https://www.youtube.com/watch?v=1TCX90yALsI

Re: Taking money off the table

#26

Post by nonethewiser »

apsurd wrote: post #24
nonethewiser wrote: post #18

[flagged]

Why do you feel the need to talk about how people talk? And now you got me doing it lol. It's just something to do. we're all doing it. chill. and now you're stuck cuz if you respond to me, well is it jut an inferiority complex, need to be right?

I think I already provided that context. I dont understand why someone would talk this way because it feels like something that would satisfy the ego of a toddler. And be ingratiating at best to a well-adjusted adult. I would feel similarly if someone pinched my cheeks and said "aw arent you just a wittle cutesy-wootsy." Yet I see it used without any meaning of offense.

Is it a need to be special? Do you get this overly flattering language in cultures where individualism isnt so pronounced?

Re: Taking money off the table

#28

Post by nachox999 »

arjvik wrote: post #13
nachox999 wrote: post #9

I believe the complete opposite. If someone is willing to buy your business, no matter the amount, it’s because it’s worth MUCH more than what they’re paying. It’s illogical for them to pay less than its real value. It’s even illogical to think they’d pay exactly what it’s worth. Why would somebody bother buying a company if they were only going to break even?

This assumes risk appetite is the same. For instance, insurance works this way - in expectation you’d pay less yourself, but a 3 sigma event can bankrupt you. You willingly pass on this risk for a price.

great example, thanks

Re: Taking money off the table

#29

Post by GCA10 »

There's a crucial extra factor that isn't in the original article, but ought to be: Money's ability to buy great experiences decreases as you get older. I've seen this with beach vacations, road trips to see a favorite band, fast cars, ski trips, etc.

Seize the moment, friend! What you can do NOW with that 10% slice will never exactly be on your possibilities map again.

Post reply on HN