Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

> You can also just say things you don't understand are always created by fools.

Do you have a better hypothesis that would explain the extreme valuations of those stocks?

> But to say that each one of these has a high P/E because every shareholder is a fool is very reductionary.

That's not what "greater fool theory" means.



> Do you have a better hypothesis that would explain the extreme valuations of those stocks?

This isn't crypto, these are real, well run companies with good fundamentals.

The trade may be a bet that they are able to corner the market and extract more value. Maybe, it's wrong, but doesn't mean it's just empty hype.


> these are real, well run companies with good fundamentals

I'm not disputing that. But even "real" companies don't warrant P/E multiples in the three-digit range, unless there's a very good reason to expect them to grow their profits by 10x or more in the foreseeable future – and that has to be the expected value of earnings growth (roughly, the average growth over all possible futures), discounted by the time value of the investment.

P/E multiples over 100 are practically never justifiable, except as "someone else will come along and pay even more" – i.e., the greater fool theory.




Consider applying for YC's Winter 2026 batch! Applications are open till Nov 10

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: