“a small deli in rural New Jersey can literally be valued at more than 100 million dollars”
Does this author not understand free markets, or are they deliberately misleading? Things are worth what someone is willing to pay for them.
It seems this deli has shares that are owned by the owner and his family. One of them transfered a handful at $9 a share to someone else.
That doesn’t mean anyone is willing to pay $100 million for all of them.
As with most lightly traded shares, the stock value doesn’t have much to do with the value of the firm.
Generally yes....things are worth what someone will pay. But not always...that’s the point of the story. If you buy controlling interest in this company / deli for $50,000,100, then what? Liquidate it - building, land equipment, stock on the shelves, and any other assets, etc., subtract liabilities......do you think it’s worth $50-mil? I doubt it. Price is what you pay, value is what you get. It’s only truly worth what it’s worth.