Too Much of a Big Nothing - Fat Tail Daily

Too Much of a Big Nothing - Fat Tail Daily

Two companies — Nvidia and Microsoft — each are worth more than $4 trillion. Together, that’s more than India’s and Japan’s combined annual output. Price is what you pay, as Buffett puts it. Value is what you get. Our question for today: how much value will investors really get from the Magnificent 7? Our Law of Conservation of Value tells us that prices cannot stray too far or too long from value. And value depends on output. Investors ought to…