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That is true, but try telling that story to the shareholders. Most shareholders don't care about long term stability, they just want a profit this year and then
by misja111 10y ago
That is true, but try telling that story to the shareholders. Most shareholders don't care about long term stability, they just want a profit this year and then cash out and move somewhere else.
- WalterBright 10y agoThe stock price is set by the expectation of long term increased value, not short term. For the simple reason that if everyone is set to cash out at the peak, there won't be a peak, the stock will tank.
- usrusr 10y agoThe stock market oracle values a dim chance for massive growth much higher than a very large likelihood of continued existence at current levels. Overoptimistic money drives out realistic money and then suddenly the corporation has to fulfill expectations it might never have actively encouraged. Or else you lose at capitalism, whatever that means. The only chance to not play that game is to have patient majority owners who are fully willing to ignore temporary devaluation when disillusioned optimists jump ship.
- WalterBright 10y agoRiskier investments tend to have lower current values, which prices in the risk. But for a more meta point, if you believe you are smarter at valuing stocks than the market is, then you can make a fortune at it if you are correct. Or even just mostly correct. You don't need to convince me or anyone else.
- goodcanadian 10y agoStart paying dividends again. You don't need growth if you get your return in another way.
- ozim 10y agoAlso that if you will be conservative guys with big money will go to someone who is not and is making quick money for them.