When Everything That Counts Can’t Be Counted

And when the cost of money is lower (or, effectively zero) as it is today, these things become more highly valued by investors than physical assets are because they are weapons that corporations can use to nullify the moats and assets of the incumbent corporations that they are competing with for customers, revenue and market share. And as a result of this popular preference for asset-light, recurring revenue model companies, factor (or smart beta) strategies that weight portfolios by the stocks’ price-to-book value have badly trailed the market. New initial public offerings for companies worth billions of dollars with little or no history of profit-making or tangible book value growth are arriving every month now.

Source: thereformedbroker.com