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> With a stock, you can be right, and it doesn't matter. Stock is only worth what somebody will pay for it I don't see it that way. To me, a stock is worth the
by MarkMc 9y ago
> With a stock, you can be right, and it doesn't matter. Stock is only worth what somebody will pay for it
I don't see it that way. To me, a stock is worth the 'fundamental value', i.e. the future divided payments discounted by an appropriate interest rate. If no-one is willing to buy my shares I'm still happy because I get the future dividends.
- solaxun 9y agoThat's all find and well, and using the "dividend discount model" is one of the many methods of valuation, but not every stock pays a dividend. Those that do can cut them at their leisure.