Hedge Fund Question: You you are investing your resources in a college education because being interviewed by Ackman while the CNBC TV scrolls in the background. THERE ARE more sellers than buyers!
Ackman turns to you with a worried expression and asks you to confirm or deny the trader’s statement. You will be thrown from the 20th floor if you get this one wrong. Is there one price or two prices at any one time in the marketplace? A transaction occurs at one price but what determines which of the two prices at any one time? Those four companies touch our lives whether we want them to or not. How did those four firms amass so much power and what does that imply for our futures? You may know of these firms, but you and I probably vastly underestimate them, especially Amazon.
Whether you invest in those companies, you need to understand their effect on other industries. How is value created and destroyed in the digital age? While Amazon grows other retailers are barely treading water. Amazon’s cost of capital is vastly lower than its competitors. We have a perception of these large companies that they must be creating a lot of jobs, but in fact they have a small number of high-paying jobs, and everybody else is fighting over the scraps. America is on pace to be home to 3 million lords and 350 million serfs. FREE CLASS in New York City Whitney Tilson through www.