tag:blogger.com,1999:blog-7905515.post2448914621239733798..comments2024-03-14T11:09:32.759-05:00Comments on Falkenblog: The Boring PremiumEric Falkensteinhttp://www.blogger.com/profile/07243687157322033496noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7905515.post-60436314905544047522013-09-06T00:36:19.743-05:002013-09-06T00:36:19.743-05:00Hmm, it's behind a paywall - but this seems to...Hmm, it's behind a paywall - but this seems to be a weaker explanation than the more obvious one: The discount is there because the market is worried that management doesn't really know what they are doing in each industry, and may be incentivized to grow the size of the company for their benefit at the expense of shareholders. And the market overprices this discount.<br /><br />And this would be entirely consistent with skewness being related to how diversified the firms actually are.Jeff Lhttp://unpleasantfacts.comnoreply@blogger.com