GameStop And ‘The Value Of Nothing’
In a Bloomberg Opinion piece this week, Nir Kaissar wrote that "GameStop’s stock [isn't] unusually disconnected from the company’s underlying business, as many people wringing their hands about market efficiency have suggested."
I'm not "wringing my hands" about market efficiency. Markets aren't always efficient. Everyone knows that. You shouldn't wring your hands about it. It's what creates opportunity. Arguably, we don't want 100% efficient markets. We want markets that are almost always
To date- this craziness really does seem to be the intersection of where gambling and investing intersect. Also, those who were traditionally classified as “investors” might have been acting more as “gamblers” and vice versa.
However, right now GME’s greatest asset is its stock price and if that could be used as currency ( such as Henry Singleton did with Teledyne) there could be a path that makes sense from an investment standpoint.
For what it is worth, this is not my type of investing.
Also, I think the story of Teledyne- both during the time period that they issued stock for purchase of companies and that they retired their stock is one of the more interesting stories about capital allocation.
I’m somewhat curious as to why there would be a congressional hearing into the Gamestop craziness. Since some of these congressmen have sold their souls to the big money interests would they be trying to figure out how to profit from future craziness?