Thread by @jposhaughnessy

1/ New Infinite Loops with @OSAMResearch Partner @Jesse_Livermore drops this Thursday, April 29th!

Jesse: "I think the intrinsic value of an asset is what it's worth is in itself, from owning it for, for its own sake. I think a good way to test this is to just ask yourself for

2/ any asset or anything in general, anything, whatever it is, what would be the most that you would pay for it? If you were stuck with it forever?"
~@Jesse_Livermore

Next, we have Transactional Value which Jesse describes thus:

3/ "The transactional value would be the value that comes from the fact that there's this network of confidence in the market, that people have been doing this for hundreds of years and we know that when you wake up tomorrow, the S&P is not going to be at 500.

4/ It's going to be near where it was yesterday and people are kind of anchored to where it's price is and you can sell, and you can basically take all your money, 100% of it and put it into the stock market and know that you'll be able

5/ to get a lot of that out anytime you need to. That's the transactional value, which is the premium."
~@Jesse_Livermore

A simple heuristic is Intrinsic Value + Transactional Value=a good proxy for overall attractiveness of the asset or asset class.

6/ Start applying this simple mental model to either current or anticipated investments and asset classes and you'll reframe the way you think about the merits of an asset or asset class.

Tune in on Thursday and listen to Jesse apply it to various investments!