Mind The Intangibles—Capitalism Does Actually Require Capital


This is a serious problem because the stock market is increasingly populated by intangible companies. Some 40% of public stocks quoted in the U.S. have negative tangible book value, meaning that their tangible assets aren’t worth enough to repay all their debt. Two decades ago, this was only true of 15% of companies, according to Vincent Deluard of INTL FCStone Inc., who has carried out intensive research on the subject.