this post was submitted on 31 Oct 2023
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[โ€“] TenderfootGungi@lemmy.world 28 points 1 year ago (1 children)

Theoretically what someone would pay for it. The buyer always has plans to make it better.

Or the textbook definition, the present value of the sum of all future profits.

[โ€“] Dave@lemmy.nz 17 points 1 year ago (1 children)

The buyer always has plans to make it better.

That's an interesting claim to make, especially on this post ๐Ÿ˜„

[โ€“] assa123@lemmy.world 2 points 1 year ago

Indeed very interesting. It is a fundamental principle of finance: Investors seek to maximize utility, but this is under the axiom of complete rationality. And even if that condition is met (which I doubt), the utility function of money is not concave at all levels, for example leftmost of the graph, before the price of food. I think that after some point, utility becomes flat and Musk is way beyond that point. Additionally he seems to be a risk loving investor, not a risk averse.