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A comment on Airbnb valued at $13B ahead of staff stock sale. Parent comment

Re:Airbnb valued at $13B ahead of staff stock sale by rokhayakebe on Friday October 24, 2014 @10:45AM (#8503904)
VC: "I am going to buy these goods at $1,000 because that is what they will be worth in the future."

You: "Great, how much will you sell them for when they are worth that $1000"

VC: "$2000"

You: "And who will buy it at that price when they worth only half"

VC: "Let Wall Street worry about that"

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Re:Airbnb valued at $13B ahead of staff stock sale by devinmontgomery on Friday October 24, 2014 @01:49PM (#8504902)
It's more like:

VC: "I am going to buy these goods at $1,000 today because I expect to be able to sell them for $1,100 in one year".

How they arrive at the $1,100 is based on the amount of risk there is and the return they could get on a zero-risk investment.

Seriously, finance seemed like mumbo jumbo to me to too before I learned about it. But it's actually pretty interesting. This is the calculation for present value.

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