Comment on One year after being bought for $44 billion, X is worth $19 billion
TenderfootGungi@lemmy.world 8 months agoTheoretically what someone would pay for it. The buyer always has plans to make it better.
Or the textbook definition, the present value of the sum of all future profits.
Dave@lemmy.nz 8 months ago
That’s an interesting claim to make, especially on this post 😄
assa123@lemmy.world 8 months ago
Indeed very interesting. It is a fundamental principle of finance: Investors seek to maximize utility, but this is under the axiom of complete rationality. And even if that condition is met (which I doubt), the utility function of money is not concave at all levels, for example leftmost of the graph, before the price of food. I think that after some point, utility becomes flat and Musk is way beyond that point. Additionally he seems to be a risk loving investor, not a risk averse.