Tesla is worth 120 billion USD and mostly because of its technology.
Rivian is worth 5 billion USD based on the forecast it will actually make revenue.
I had a professor once who said that the discounted cash flow models were considered old in the 2000 - 2001 dot-com boom. And then came the bust.
Wall Street Journal had an article about Cathie Wood and its Ark Invest company comparing the likes of Cathie Wood with Warren Buffett. The article concluded that the likes of Cathie would fizzle out like the rest.
The 'Greater fool theory' is all very nice, but somebody will be left holding the can. As always. And somebody seems to think the general public is not very smart. Well, I just hope things do not escalate after the coming technology stocks bust and the economic crisis that will follow.
But for now, the music is still playing and the dancing is in full swing.
No comments:
Post a Comment