On value and worth

Friday, and a short note from my project of trying to write concise stuff.

This note was inspired by a discussion I overheard at an investment firm last week. The main point was this: "I heard they bought X company for Y millions! It's absolutely not worth that much." Well, maybe it wasn't. Or maybe it was. I don't know. But I believe we can perceive worth from another perspective - a perspective that is one of the first things you learn in finance classes. So here it goes:

On value and worth: There is no objective or 'true' value of something (despite what economists and analysts might claim). The value of something - what something is worth - is linked to someone's needs and preferences. The only way to measure value is to observe what someone is actually investing in it, in terms of time, money, etc.