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0 pointskoonsolo3y ago0 comments

I get it that this is about profit. But to be fair, you have to factor in the valuation of the company to see if something was gained or lost in all those years.

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koonsoloOP3y ago· 2 in thread

Did I say something stupid because of the downvotes?

If a company chooses to reinvest the profit into the company, and therefore increases the valuation, it can be a gain, right? In that case no profit is made.

If you have $1 loss and gain $3 valuation, that's a gain of $2, right?

s1artibartfast3y ago

From an owner/investor perspective, you are correct. From the perspective of the corporate entity, you don't count valuation as profit/loss.

For example, Twitter didn't make 44B revenue this year on the sale and you won't see it on their budget. Stock holders made that money.

Same will be true again if Elon sells it for a profit or loss.

koonsoloOP3y ago

True, but when the corporate entity makes revenue, you basically decide to either keep it as a profit, or reinvest into the company itself. You would assume that reinvesting means the company is growing and so is worth more.

I get it that shares changing hands doesn't really change anything.

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