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When Should You Pay a Premium?

26 min • 11 maj 2022

What are examples of when it makes sense to pay more than the usual price or fair value for an item or asset?

Topics covered include:

Why we are willing to pay a premium for convenience, scarcity, status and to avoid waste
What is the difference between net asset value and book value
Why business development companies can sell at a premium
Why farmland REITs sell at a premium
Why closed-end funds sell at a premium
How to decide whether to pay a premium or not

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Show Notes