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55 sats \ 3 replies \ @optimism 16 Jun \ parent \ on: What do you think is a fair mNAV for Strategy? bitcoin
Yes. Plus if you turn your one lemonade stand into 1000 your value will increase so I could sell if I need liquidity.
I would generalize that this is why growth stocks (young companies) usually don't pay dividends but value stocks (mature companies) do.
So lets assume my prospectus said I wouldn't pay dividends for next 10 years while we were in growth phase.
What would a dividend in 10 years need to be to make financial sense for you to lock up that money now? So using our numbers....you gave me $10,000 today. What type of dividend are you expecting in 10 years to make that a "good investment"?
so I could sell if I need liquidity
And the person that would buy your share would be in the same boat? They would be buying based on future dividend?
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What type of dividend are you expecting in 10 years to make that a "good investment"?
If you have one lemonade stand today and the plan is for 1k stands? I'd expect about a 5000x, especially since a 10k investment for a lemonade stand means I'm your only investor and I'd own 20% of your business. The amount of competence you'd have to show me is going be insane but assuming you're super competent, hell yeah. Let's make some money. You'll make a lot more than me at 5000x so we be sippin Cris after those 10y.
And the person that would buy your share would be in the same boat? They would be buying based on future dividend?
They'd be buying on the expectation of profit.
It depends on when I sell. Maybe I sell some halfway at 500x and there's still a lot of growth (10x) to be had.
If close to the 10y, they'd buy for (a) control or (b) dividends beating bonds at a stable valuation outlook. Different goal than my risk-taking to seed you.