Hidden Values
Categories: Company Valuation
Here at Hidden Values Ranch, we specialize in developing award-winning rodeo riders…and making sure they have the financial savvy and investment know-how to make their winnings support them through retirement. We do this by teaching them how to be value investors: investors who look for omitted or undervalued assets on a company’s balance sheets that might lead to big financial gains in the future.
These so-called “hidden values” can include things like trademarks and patents—intellectual property rights that might mean beaucoup bucks once on the market. Or they could be based on something physical like land; a hotel on the Vegas Strip, for example, is sitting on an extremely valuable piece of property, something it could sell at some point for a lot higher value than what is claimed on its balance sheets.
Wherever they come from, the theory behind value investing is that hidden values = future financial success. So when a wannabe rodeo rider comes to Hidden Values Ranch, we teach them how to tie a goat, bend a pole, and look for potential buried within the balance sheets of organizations.
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![Finance: What are Hidden Assets?](https://media1.shmoop.com/video/thumbnails/COURSE.FINANCE.827_770x433.jpg)
Finance: What are Hidden Assets?2 Views
Finance allah shmoop what are hidden assets Come and listen
to a story about a man named did poor mountaineer
Barely kept family Remember them Beverly hillbillies never watched nick
at nite Well ask your parents Yes So jet owned
forty acres and a mule and had been farming well
forever Then one day he was shooting at a raccoon
You think that's what that is When up from the
ground came a bubbling crude oil that is texas tea
black gold You know the song So yeah jed stumbled
on an oil or a goldmine and hundreds of millions
of dollars later that hidden asset like the oil was
hidden from his farm He just didn't know it was
there that he was shooting at a coon and gave
him a really nice swimming hole in nine o two
one oh seriously great hidden assets happen all the time
in corporate america as well A patent for flying robot
cars that the company didn't realize it had which suddenly
became relevant when you know tracking drones became like a
thing Broadcast rights attached to a tv station acquisition where
new technology lets cell phone spectrum clamp on and produce
Extremely clear phone calls while that asset was hidden No
not so much Well a change in tax law such
that the huge tax losses in the bankrupt company and
wired for scrap are now suddenly age enormous tax deduction
The acquirer won't pay taxes now for two years because
of it well asset don't remain hidden very long Usually
companies have to disclose where they find value if for
no other reason than that it usually goose is their
stock price and everyone likes being rich right Okay so
some people's idea of riches having eighty acres and two
mules But you know that's just jet good and listen
to a story about a man named shmoop over mountains 00:01:49.471 --> [endTime] and never never mind