I dont have the exact numbers, but I read that
VW sold about 12 million cars last year,
Mercedes over 2 million,
Tesla less than 1 million.
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How can there be suge a huge difference in the worth of these companies?
In: 0
A lot of good answers here on the difference between value stocks (priced at current value) and growth stocks (priced based on speculative/perceived value.)
One more thing to add. There are cycles in the economy; ups and downs. We go through periods of time where assets generally increase in value and visa versa. At the end of a cycle before assets go down, there is rampant speculation. In the late 90s, it was the dot come bust. In 2008, it was sub prime mortgages. In early 2021, tech stocks, crypto, some metro housing markets, etc. had rampant speculation because “safe” investments have no return.
In essence, too many people invest for limitless growth rather than preservation of wealth. Low interest rates had a role in this of course.
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