Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by paxys on Thursday April 14, 2022 @02:44PM
(#31031454)
Think about it this way – if Twitter shares were to rise ~17% from where they are today, would >50% of investors immediately hit the sell button? If not, then why would the same number agree to this deal?
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by vanjajaja1 on Thursday April 14, 2022 @03:10PM
(#31031855)
The difference is that one option is selling a declining company today for 17% bonus, the other option is selling a company that has shown 17% growth. Its not the same comparison
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by polishTar on Thursday April 14, 2022 @03:29PM
(#31032106)
There's a selection bias you need to consider. Twitter investors probably wouldn't be Twitter investors if they thought it was on the decline without significant growth prospects.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by riffraff on Saturday April 16, 2022 @12:24AM
(#31049456)
Again, the 17% growth has to be considered with time in mind.
If I guarantee you a 1000% return on your investment, would you give me a random amount of money?
Probably not, if this happens in 50 years, but very likely if it's in 5.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by itstomkent on Thursday April 14, 2022 @06:43PM
(#31034348)
Is $70 in five years drastically different than $50 today? We've had what, 8.5% inflation in the past 12 months?
but it depends on how far that "again" is.
If you bought at $33 a month ago, you'll be now getting a 60% return. You can put that in another less risky investment and still have a very healthy return over the next 5 years, say 5% , less than the historical sp500 rate, you'd get to ~$69.
So if Twitter gets back to $70 in five years Musk's offer is still an ok investment, but its growth has been almost zero for the last 8 years, it's not trivial that it would become a powerhouse in the next 5.