Larry Summers on Tech Valuations

Larry Summers can be called many things. Dumb ain’t one of them. This is what he says of tech valuations:

If you look at the price earnings ratio for technology companies relative to the price earnings ratios for all industrial companies, you take that ratio, PE technology divided by PE industrial, you can plot that ratio over the last 40 years, and it is at the lowest point that it’s ever been.

This is what he has to say of his portrayal in the movie, The Social Network:

One of the things you learn as a college president is that if an undergraduate is wearing a tie and jacket on Thursday afternoon at three o’clock, there are two possibilities. One is that they’re looking for a job and have an interview; the other is that they are an asshole.

(Via Arnold Kling)

Posted by on July 21st, 2011 at 11:39 am


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