Therefore, people are buying stock in a company that loses money on its investments that is expanding its investing activities. Ben Graham was right “Mr. Market is insane.” Moreover, it is not clear how Zillow will pay the houses to buy to flip. For instance, Zillow had just $651,058 in cash and equivalents, $66,083 in receivables, and $903,867 in short-term investments on 31 December 2018. Hence, Zillow had assets of $1.892 billion at the end of 2018. Consequently, I think the only ways Zillow can finance the flips are to borrow money or issue collateralized debt. Thus, Zillow is adopting the business model that led to the mortgage catastrophe of 2007 to 2008.