We’ve joked before on this blog about how the market is rewarding businesses where the pitch seems to be their profitability is as far away as logic can stretch. “Don’t think about what we are, think about what we might become, and then add 10 years,” seems to be the mantra.Take this one example. Back in early June, we took a look at a Goldman note on Chinese electric car maker Nio, which derived its price target for the business from its forecasted 2030 earnings. Nine whole years away.Oh, how we laughed at time. After all, it is insanity to think — particularly after this year of all years — that anyone knows what the electric car market will look like in 2025, let alone five years after that. Of course, the stock is up 732 per cent since. Nice one.Yet, even though we’ve
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We’ve joked before on this blog about how the market is rewarding businesses...