> Any difference in valuation you come up with compared to the market cap would simply mean that there's something missing in your calculations that makes up the difference
Not necessarily, can also mean that your circumstances are different from the large traders. Value is relative to your net worth, status RE the tax system, risk tolerance and current allocation. So it is not only possible but likely that the large traders have a valuation that is correct for them and wrong for you as a small market participant.
Besides, if all assets are - in some sense - equal then any inane strategy that involves buying assets is equivalent to any other and just dumping all the cash into any basket of assets is workable. So people could probably buy just assets they like and expect an equivalent return to everyone else. If that logic holds.
> people could probably buy just assets they like and expect an equivalent return to everyone else
That's pretty much true. Although risk and volatility does differ from asset to asset. So as a lone investor you can decide how much you are willing to risk to get better returns.
Not necessarily, can also mean that your circumstances are different from the large traders. Value is relative to your net worth, status RE the tax system, risk tolerance and current allocation. So it is not only possible but likely that the large traders have a valuation that is correct for them and wrong for you as a small market participant.
Besides, if all assets are - in some sense - equal then any inane strategy that involves buying assets is equivalent to any other and just dumping all the cash into any basket of assets is workable. So people could probably buy just assets they like and expect an equivalent return to everyone else. If that logic holds.