4min chapter

The Compound and Friends cover image

Nvidia Breaks Away

The Compound and Friends

CHAPTER

The Importance of Transparency in Valuations

At its peak, the Sun Microsoft system is stock hit a valuation of 10-time sales. When stocks took a massive beating later on, CEO Scott McNeely said to investors: Do you realize how ridiculous those basic assumptions are? And that stock ended up at $3. The only way to know if something will succeed is after it actually succeeded. There's no way of knowing anything else.

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