Mark Yusko: Markets Are Broken! You Would Have To Live 111 Years To Get A 10% Return

In his latest discussion on The Blockworks Podcast, Mark Yusko explains how we’ve broken the markets. Here’s an excerpt from the discussion:

Yusko: We’ve broken the markets. The markets are broken. We don’t have price discovery. We have assets in the stock market that don’t reflect fair value.

We pay 100 plus times revenue for companies right. If you actually did the math you can’t make a good return on that for hundreds plural of years and I used to yell about Cisco in 2000 at 20, I mean at 80, let me get this right at 260 times earnings, not revenues but earnings.

You would have to live 111 years to get a 10% return. This is hard, it’s not impossible but it’s hard and at 160 times revenues, which is my son’s company Snowflake sells at you can’t make that math work. There is no way.

So markets are broken.

You can watch the entire discussion here: