Source: Semafor
by Liz Hoffman
“In the 1970s, if you wanted to understand a company’s worth, you could literally kick the tires. More than 80% of S&P 500 companies’ assets were, in accountant-speak, ‘tangible’ — buildings, inventory, land, and securities with measurable value. Today, it’s about 10%. The rest is a corporate ectoplasm of code, data, and brand power. Marriott is a hotel company that doesn’t own hotels. Delta Airlines’ credit card partnership is more profitable than its airplanes. This shift from hard assets to soft ones isn’t necessarily bad. It mirrors the broader pivot in the US economy from manufacturing to services, which are more profitable and less vulnerable to outsourcing. … But the wealth being created today is a haze of licensing agreements and magic beans.” (11/11/25)
https://www.semafor.com/article/11/11/2025/the-economy-is-running-on-magic-beans