Originally Posted by
ExtraSlow
I think you guys know I'm a pretty old-school thinker when it comes to investing. So I'll proclaim my ignorance when its comes to "new-economy" style companies. Uber and Tesla are good examples. Neither one has ever run a profit, and honestly, neither one is even close to doing so, but their combined market capitalization are over $90 BILLION DOLLARS. How the hell does that work? Companies used to be worth the value of their cash flow plus assets, but if that was the case both these companies would be worth $0.
Is this a case of there being true value that's not captured with my simplistic thinking, or are all investors just assuming that they'll be able to sell in the future to another eager buyer, kind of a "greater fool" theory?
It all looks like tulipmania to me.