Many investors, some very talented investors, believe an asset has intrinsic value. But Austrian Economists believe assets have subjective value. Meaning, we rank ordinally our preference for A over B.
Intrinsic value must have a fixed point to be measured against, but no such fixed point exists within human action. Everything really is different this time.
So how is one to use this knowledge for investment purposes?
I will be starting an investment letter outlining the answers to this question. Look for more to come.
Intrinsic value must have a fixed point to be measured against, but no such fixed point exists within human action. Everything really is different this time.
So how is one to use this knowledge for investment purposes?
I will be starting an investment letter outlining the answers to this question. Look for more to come.
"Value is a judgment economizing men make about the importance of the goods at their disposal for the maintenance of their lives and well-being. Hence value does not exist outside the consciousness of men."
Carl Menger. "1. The Nature and Origin of Value", Principles of Economics online edition, Chapter III., The Theory of Value, referenced 2009-05-14.
Carl Menger. "1. The Nature and Origin of Value", Principles of Economics online edition, Chapter III., The Theory of Value, referenced 2009-05-14.
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