Cliff Asness: Timely & Timeless Investment Wisdom | #528
The Meb Faber Show - Better Investing
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Transparency Over Illusion: The Cost of Market Ignorance
The problem with private equity lies in a lack of price transparency, which challenges the credibility of valuations. Unlike public markets, where prices fluctuate in real-time, private equity firms do not have the same obligation to report market conditions, which leads to potential discrepancies in asset valuation. Investors may debate the returns generated, but the underlying volatility in asset pricing should be acknowledged as a defining factor of investment strategy. The volatility observed in assets like Bitcoin is suggested to be a characteristic asset feature rather than an inherent flaw. This perspective emphasizes the need for greater transparency and understanding of market dynamics in private equity investment.
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