The Untouchables

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This graphic (from Visual Capitalist) shows what a sea-change has taken place in the concept of business valuation. A half century ago, businesses were valued, largely, based on their honest-to-God assets: things like equipment, cash on hand, and other capital holds. In our new loosey-goosey, make-it-up-as-you-go-along world that we live in, all of that “real” stuff is basically rounding error, and the vast majority (almost the entire value, in fact) is pie-in-the-sky stuff like Customer Goodwill, to which you can just dream up any value you like.