The Ritual of Capitalization (2021)
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The Ritual of Capitalization (2021)
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Re: The Ritual of Capitalization (2021)
#2A thing is only worth what someone is willing to pay for it. Valuation by formula is a pseudo science because every thing you do is ultimately subjective.
Re: The Ritual of Capitalization (2021)
#3Not convinced that an article which mentions religion more times than it mentions risk and doesn't mention growth expectations at all tells us very much...
Re: The Ritual of Capitalization (2021)
#4A thing is only worth what someone is willing to pay for it. Valuation by formula is a pseudo science because every thing you do is ultimately subjective.
Subjective things can’t be described by a formula?
Re: The Ritual of Capitalization (2021)
#5> So what happens in practice is that investors capitalize income by keeping one eye on capitalization itself.
Is it right that this long essay is saying (roughly) that share prices are not really related to future earning expectations, but to future share price expectations? Well, blow me down with a feather. I'd never have guessed that stock markets were mainly about speculation.
Re: The Ritual of Capitalization (2021)
#6A thing is only worth what someone is willing to pay for it. Valuation by formula is a pseudo science because every thing you do is ultimately subjective.
Subjective things can’t be described by a formula?
Who knows what takes place in a person's mind? They may not be clear themselves. So, no, unlikely, unless or until the 'it' is objectified.
Re: The Ritual of Capitalization (2021)
#7Earlier quoted context omitted.
Subjective things can’t be described by a formula?
Who knows what takes place in a person's mind? They may not be clear themselves. So, no, unlikely, unless or until the 'it' is objectified.
It’s an educated guess, not the word of God. You don’t have to know it precisely to produce useful results. The entirety of physics is wrong, so what, it still allows us to build rockets, skyscrapers and computers.
Re: The Ritual of Capitalization (2021)
#8Earlier quoted context omitted.
Who knows what takes place in a person's mind? They may not be clear themselves. So, no, unlikely, unless or until the 'it' is objectified.
It’s an educated guess, not the word of God. You don’t have to know it precisely to produce useful results. The entirety of physics is wrong, so what, it still allows us to build rockets, skyscrapers and computers.
And there's a wide variation between even two people on what that guess should be.
Re: The Ritual of Capitalization (2021)
#9Not convinced that an article which mentions religion more times than it mentions risk and doesn't mention growth expectations at all tells us very much...
You're missing the point of the essay actually. It's like complaining that an essay written by an atheist about church doesn't talk about sin and salvation.
Re: The Ritual of Capitalization (2021)
#10> So what happens in practice is that investors capitalize income by keeping one eye on capitalization itself. Is it right that this long essay is saying (roughly) that share prices are not really related to future earning expectations, but to future share price expectations? Well, blow me down with a feather. I'd never have guessed that stock markets were mainly about speculation.
The value of everything is speculation