Quote:
Originally Posted by Delray Vintage
Nothing wrong with fractional ownership if the valuation is fair. Owning a fractional share of an overvalued company(card) is not a good idea. If the Mantle 10 is worth 2.5 mil at auction then a fractional share is a fair investment. If the value is $1.25 million at auction then you are paying double the current value to own a fraction. As a minority owner you will have no say in how or when the card is sold. Not sure what liquidity you have if you want to resell the share.
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I agree with you when it comes to static assets, but if you look at the past decade “overvalued” companies are pretty much what have paid the bills. The majority of the leading gainers have been riding PE’s of anywhere from 15-1 to 40-1. Investing in something “overvalued” isn’t necessarily a losing proposition.