Are they? If markets were rational and efficient, you wouldn't have stocks trading below their asset value. There is nothing rational at all about having $1B on the books that you could acquire for the company in a fire sale, and then trading as though you only have $500M. This is the basis for how value investing works and how people like Ben Graham and one of his students you may have heard of (Warren Buffett) have made billions of dollars off of this assumption. Fred's a great private/venture investor, but he's not a credible source on macroeconomic theory.
Are they? If markets were rational and efficient, you wouldn't have stocks trading below their asset value. There is nothing rational at all about having $1B on the books that you could acquire for the company in a fire sale, and then trading as though you only have $500M. This is the basis for how value investing works and how people like Ben Graham and one of his students you may have heard of (Warren Buffett) have made billions of dollars off of this assumption. Fred's a great private/venture investor, but he's not a credible source on macroeconomic theory.