Land
Agricultural land prices are hard to make sense of. Some people think they can keep going up. Others think they are wildly overpriced. Myself? I have no idea. But here's my two cents on it. When pricing traditional investment assets, the astute punters tend to look at two main factors: (1) the earning potential of the asset, and (2) the perceived risk of the asset. Lets start with the earning potential of an asset. Logically, if the earning potential increases, then all else equal (perceived risk, etc), the price of the asset will increase. More importantly, prices don't change year by year as earnings change, its the punters expectation of future earnings which sets the price of an asset. Hence why companies like Uber, who don't generate much earnings now are priced on such huge price to earnings ratios. Investors expect that their earning potential will increase in the future, so are happy to pay a pretty penny for it. {add idea of high ROIC? probably too detailed} Lookin...