
Unicorns and Bubbles
“What we learn from history is that people don’t learn from history” – Warren Buffett, 2006. A financial bubble is characterized by an unsustainable increase in the divergence between the price of an asset and its true intrinsic worth. Speculative enthusiasm is always to blame for such irrational exuberance. However, in the end, all bubbles see the price of the underlying asset decline to a level more in line with its fundamentals. Our financial history consists of countless