Company A’s market cap is $100bb
Company A invests $1bb in Company B, previously worth $5bb
Company B’s market cap goes up by factor of 100.
Now Company A’s market cap increases (through valuation) to $200bb
Company B’s market cap increases to $500bb.
Company C and D had $10bb in company A prior to 2X valuation increase.
$120bb of value has been created out of thin air.
Between AMZN, AMD, MSFT funny business, Berkshire Hathaway, others…
What % of stock market total cap is double-entries of fictitious money?
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