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>If I'm holding a bunch of TSLA stock and want a payout in 2018, it doesn't matter to me what Tesla's profits are in 2018 This has nothing to do with a 2018 pa

>If I'm holding a bunch of TSLA stock and want a payout in 2018, it doesn't matter to me what Tesla's profits are in 2018 This has nothing to do with a 2018 payout. Do you know what you are buying when you buy a share of TSLA? You are buying a claim to future profits. You expect to be paid in the future: when and how much? If you can't answer those questions, why are you buying stocks ?

taysic 10y ago
I'm not expert but the value of a stock is not only tied to profit, it's also tied to how optimistic people are about a company and where it will go in the future. That drives up the price of a stock and thus how much you can sell it for. This is what Elon Musk is a master at - whether his strategy is feasible or not. I personally believe Musk will not give up.
- bigtimeidiot 10y ago
  >I'm not expert but the value of a stock is not only tied to profit, it's also tied to how optimistic people are about a company and where it will go in the future. Those people are optimistic because they expect their share of profits to rise in the future.
qaq 10y ago
If you came up with a definitive way to value stocks it would mean a) you are probably the richest man in the world b) You at the very least deserve a Nobel prize in economics.
- bigtimeidiot 10y ago
  >If you came up with a definitive way to value stocks it would mean a) you are probably the richest man in the world b) You at the very least deserve a Nobel prize in economics. I'm not looking for a "definitive way", I'm looking for a rational way to assist in pricing a stock. When something can't be forecast perfectly, we should cease forecasting it at all? I'm just asking a simple question about what you'd pay for the stock, and why.
maxander 10y ago
Sure, but the value of a stock isn't tied to what I will be paid from it through dividends or whatever- its the value of what I and all future holders of the stock can expect to be paid. How long I hold the stock, and how much of those dividends I personally receive, is not an important factor.

taysic 10y ago

I'm not expert but the value of a stock is not only tied to profit, it's also tied to how optimistic people are about a company and where it will go in the future. That drives up the price of a stock and thus how much you can sell it for. This is what Elon Musk is a master at - whether his strategy is feasible or not. I personally believe Musk will not give up.

bigtimeidiot 10y ago
>I'm not expert but the value of a stock is not only tied to profit, it's also tied to how optimistic people are about a company and where it will go in the future. Those people are optimistic because they expect their share of profits to rise in the future.

qaq 10y ago

If you came up with a definitive way to value stocks it would mean a) you are probably the richest man in the world b) You at the very least deserve a Nobel prize in economics.

bigtimeidiot 10y ago
>If you came up with a definitive way to value stocks it would mean a) you are probably the richest man in the world b) You at the very least deserve a Nobel prize in economics. I'm not looking for a "definitive way", I'm looking for a rational way to assist in pricing a stock. When something can't be forecast perfectly, we should cease forecasting it at all? I'm just asking a simple question about what you'd pay for the stock, and why.

maxander 10y ago

Sure, but the value of a stock isn't tied to what I will be paid from it through dividends or whatever- its the value of what I and all future holders of the stock can expect to be paid. How long I hold the stock, and how much of those dividends I personally receive, is not an important factor.