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So should I buy some Yahoo stock?

Why would that follow?

Because if all shares of the company is valued at X, and the tangible assets of the company are valued at Y, and X < Y, then isn't Yahoo's stock objectively undervalued? I'm not some sophisticated investor, I just buy index funds, but isn't this kind of objective valuation of companies the basis of value investing a-la Warren Buffet?

But you can't buy 100 shares of Yahoo! stock then turn 24 of those shares into Alibaba stock. Just because Yahoo! owns a 24% stake in Alibaba doesn't mean your ownership of Yahoo! is fungible with ownership of Alibaba.

No, the discount is due to the fact that the market believes there is a risk that Mayer will misuse the money. More generally, no, you are not smarter than the market.

Never said I was. That's why I buy the index funds. :)

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