The value premium theory goes that undervalued public companies are a long-term investment opportunity which provide long-term gains. This all assumes, however, that there are sufficient public value companies to recognize the premium. Private Equity has long been recognizing the bulk of the premium by buying public value companies and then taking them private which then dilutes the remaining available premium. The question then becomes is the value premium effectively dead for the average investor?
https://www.theatlantic.com/ideas/archi ... es/675788/The publicly traded company is disappearing. In 1996, about 8,000 firms were listed in the U.S. stock market. Since then, the national economy has grown by nearly $20 trillion. The population has increased by 70 million people. And yet, today, the number of American public companies stands at fewer than 4,000. How can that be?
Statistics: Posted by mbouck — Tue Apr 16, 2024 3:48 pm — Replies 0 — Views 37