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Was thinking about how it’s clear having a reliable store of value will demonetize real estate to the value of its utility, but what about stocks? How much of AAPL is SOV and how much is investment?

Or the S&P, how much of it is SOV (no longer needed) and how much is investment?

What is the difference between SOV and investment?

Imagine in a hyperbitcoinized world, someone says, I’ve got a business idea that can earn profits on the bitcoin you invest. You don’t need to invest because you have a SOV but you might want to invest to increase your stash.

But in the fiat world, it’s a lot more murky the extent to which AAPL is an investment vs a store of value. That’s because most “investing” is really just SOV in disguise. Not that many people would really invest if they had a sound SOV.

Remove the SOV component from real estate and it might be worth half. But remove it from stocks, and instead of treading at 30x earnings, maybe AAPL would be at 5?

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Discussion

Dayne Jacobson 6mo ago

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𝕞𝕪𝕡𝕒𝕥𝕙𝕥𝕠𝕗𝕚𝕣𝕖 6mo ago

What I am thinking about is in the next few years, the last of the Boomers will be retired and then all living from their stonks and real estate portfolios.

They were a large cohort (Baby Boom), so the demand from upcoming generations is much lower. But the selling should be relentless as this was the most selfish generation in history and they will spend it mostly on themselves.

Anyone buying this crap is exit liquidity.

chancellor 6mo ago

It's definitely interesting. I think conventional investors and hedge funds will still choose securities for the short term stability. Apple doesn't typically have 80% drawdowns.

Chris Liss 6mo ago

that's what Saylor is capitalizing on I think with the preferreds.

chancellor 6mo ago

It will be interesting to see it play out.