GoldTent Oasis is dedicated to our friend and founder John F. Murphy (Wanka) of Key West, Florida without whom this website would not exist. Gone but never forgotten.
ENTER ~ Post by the Golden Rule. Gentlemanly conduct is the attire of the day. GoldTent Oasis is not responsible for content or accuracy of posts DYODD. ~~~~~~~
There is a glut of cash out there and investors are looking for the lottery ticket to turn that cash into gold vs the alternative (.e.g., negative rates or weak global economy). Hence, Softbank came to the fill in that gap. The bubble will burst but will build up again in a few year ( or it may never burst now) so long the cash is abundantly available.
When Softbank re-invests at inflated values – it mark’s up the book value of it’s holdings – but I don’t understand why that is a profit. A profit occurs if they sell the shares, yes? If they had a magnificent profit from the $47B valuation of WeWork would they not have had a magnificent tax bill for all the profit they ‘earned’?
There is a glut of cash out there and investors are looking for the lottery ticket to turn that cash into gold vs the alternative (.e.g., negative rates or weak global economy). Hence, Softbank came to the fill in that gap. The bubble will burst but will build up again in a few year ( or it may never burst now) so long the cash is abundantly available.
Excellent, always worth my time. Thank you.
When Softbank re-invests at inflated values – it mark’s up the book value of it’s holdings – but I don’t understand why that is a profit. A profit occurs if they sell the shares, yes? If they had a magnificent profit from the $47B valuation of WeWork would they not have had a magnificent tax bill for all the profit they ‘earned’?