The entire movie is about her going on the yellow brick road and this motley crew of characters she collects– the Scarecrow who needs this and then Tin Man, the Lion. And they all get to Oz, expecting the wizard to be this all powerful person, who grants–They walk into the chamber. They each tell the wizard what they want. And the wizard has this deep voice, until the curtain drops. And you realize it’s a small guy behind the curtain who’s been pulling– there’s really no Wizard of Oz. But it turns out that they all got what they needed, during the course of the journey.
You say, what’s this got to do with valuation?I firmly believe that you learn valuation by doing. You really want to learn valuation. Here’s what you need to do. Value a company. The first time you do it, it will be like pulling teeth. Then value another company, as different from the first company as you get. So next week, I’m putting up a valuation.
It’s a crowd valuation of Uber post that I did on my website. At each stage, I ask you to decide what Uber is. Is it a car-service company or a transportation company?Is it a local networking benefit or a global networking benefit?I can tell you my story. And at the end of the process, say, based on your story,this is Tuber’s value. And the value for Uber ranges anywhere from $ million to $ billion,depending on the story you tell.
Valuations QLD get big differences in value,it’s not because the numbers are different. It’s because we have different narratives. Not all of these narratives are equally likely. And that’s really the question you’ve got to ask. It’s, what is the right narrative for my company?I promised I would not talk about Google. But I will leave you with this thought. If you’re thinking about Google as a company going forward,as an investor, here’s the question I’m asking.