Evolution from Investment to Gambling

Once upon a time, “Value Investing” meant something.  Back in a time when companies had “positive book values.”  In other words, when the plant, equipment, and other valuables were sold (like patents and branding) there would be something left over.  This positive number was then compared with the most recent market price to establish a standard accounting ratio:  Book to Market ratio.

From this eminently rational use of accounting principles, great investors (Charlie Munger and Warren Buffett are two well-known examples) arose.

But times have changed as exemplified by people like Elon Musk.  Whose investments, it could be argued from a classical standpoint, are more speculations than precision valuation exercises.

Because, as we have explained here many times, the “rational market” packed up and left…in stages.

Today, because a subscriber asked me to elucidate on how Ure plays the market (poorly) I’m forced not to begin with great insights into fundamentals.  Rather, we liken market plays to a back-alley craps game.

Which we’ll explore a bit after a few headlines and charts.

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