Comment by mcphage

> That's only possible if the financial system is valuing things systematically incorrectly.

Well… yeah. I mean, it seems clear that the market is pretty bad at valuing companies. At the very least, valuations are based on a combination of (a) measurable attributes, and (b) vibes. (a) will always be incomplete, and runs into all of the same measurement problems that everything else does. And (b) is really unreliable.

Plus, PE companies are not especially interested in long timelines, whereas companies can eventually provide a lot more value that they’re worth right now.

And that’s not even getting into situations where they own enough of the market to not care about losing customers.