First Snippet Blog article points the finger at the pictured chart.
The chart depicts the rise of intangible assets in firm value described as a “second industrial revolution”, burying with it traditional analysis, accounting, value investing and lending support to ESG.
By digging into the definition and associated formula, the article argues this chart is in fact just showing the rise in valuation across firms as measured by Price to Tangible Book.
By framing the problem in the first way one assumes a single explanation for the rise – intangible assets, itself an ambiguous word, when the intellectually honest way should be to frame it in the second way, which leaves the question open.
