
Why bank valuations have nothing to do with value
Jack GuthrieLeave a comment
Let me run you through a scenario. Imagine heading to a dealership to buy a new car. The dealer offers you a price on a car that you love of $50,000 and leaves to prepare paperwork. He is replaced by a new “automotive professional” who tell you that the same car is now worth $55,000. A third appears to tell you that the car has been oversold and is actually worth $45,000. All of them know the car well and seemingly have the same motivation to help you buy the car.