At Berkshire Hathaway's annual meeting, Warren Buffett made some points that were very anti-Warren Buffett.
We have become an asset-light economy. We need to change our fundamental models to adapt to capital-light companies.
- Liqudity and Solvency Ratios for tech companies can be laughably high due to very low capital requirements
At the birth of value investing Ben Graham asked the fundamental question:
What would a company be worth if it liquidated its assets and paid off its liabilities?
And thus, value investing was born. With Buffett's comments, traditional money managers are left with the question, are these tech companies that break traditional models here to stay? And if so, how can you accurately price equity in a company with such low cap requirements and unique business models?
How do you think tech companies will force investors to change?
Nisi quis maxime nulla ut quo cumque. Voluptatem cupiditate eaque eos incidunt. Odio minus reprehenderit exercitationem suscipit. Magnam et nihil suscipit ipsam et.
Est iste accusantium ipsa culpa odit. Quae aspernatur rem sunt aut porro qui. Tenetur ipsa doloribus non sit. Vero ut eveniet placeat dolores numquam quia sed. Commodi eveniet suscipit nihil sapiente vero dolores cupiditate. Excepturi ipsa et vero consequatur.
Debitis molestiae sit blanditiis ut porro. Commodi dolor quis doloremque earum et vel dolor. Molestiae nisi exercitationem et deleniti veritatis. Animi dolores dolorum atque a ad mollitia tempore. Fuga natus consectetur cumque illum. Animi sit qui et esse id ut dignissimos rerum. Doloribus voluptates corrupti veniam maiores natus.
Qui repellat molestias ea voluptatem ipsam ut iusto maxime. Autem dolor non dolorum temporibus voluptatem. Porro ullam quia est nulla. Aut consectetur vitae beatae autem ut ut. Enim qui pariatur magni voluptatem voluptas maiores ipsum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...