Storytelling Selling Stocks

In an economy run by narcissist thinking that they are the masters of the own universe math, income, profit and productivity don't matter, the only thing that matters is the stock price. If the stock price keeps rising and you and your company are getting shit rich on paper, what else matters? Markets have no become a laughing stock, and everyone seems to be silently participating in these emperors with no clothes.

We now celebrate leaders of these large companies for their market value and share price and not for what they are doing. Hedge funds, Venture capitalists, Angel Investors and all those benefitting from the quantitative easing money and being tasked with putting money into the viable parts of the economy where wealth and production can be created are instead now speculating on listed companies.

Image path - awai.com

Fundamentals don't matter

There was a time when companies had to motivate markets to give it capital to grow because what the would produce in goods and services as well as upskilling staff and creating jobs would be an overall benefit for everyone involved from society to the shareholder. At least that's what we were told it could have been the same bullshit, but now they just took it too damn far.

Instead of looking at earnings, profits, margins, market share, customer lifestyle, the longevity of the product and the needs in the market as well as a competition it's now all about the story. There was a time where big companies did the business, and no one knew who the CEO was, now it's all about who the CEO is and what bullshit he can swing on Twitter or in the media.

It's all about potential and the TAM (total addressable market) and this story that if you give us enough money we're going to dominate this considerable market based on a valuation not what can be extracted and traded in that market.

The story sounds good, and no one needs to know how we will get there as long as you keep throwing money at it, we will get there. That is now the investment strategy from the money people, and the tech and commodity companies that make up the large market caps are loving every moment of it.

Its all about the story

Oh, and what a tangled web we weave. Nothing makes sense anymore, earnings to share ratios are at all-time highs, and the party keeps going. If you pump a company with enough money you paper over the shortcomings they have and allow them to obliterate the competition, then create monopolies and extract as much money from the consumers from that market to pay back the insane amount of debt you took out to get there.

If that is not a terrible use of capital expenditure, I don't know what is, yet we applaud these companies like they developed some secret formula.

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