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"the value is subjective" that's what my issue with stock investment is. They aren't financial tools, in the way I'd like to think of a financial tool like a l
by hellbanner 9y ago
"the value is subjective"
that's what my issue with stock investment is. They aren't financial tools, in the way I'd like to think of a financial tool like a loan or interest-bearing account.
They're gambling on what other people en masse will value a stock - some of whom are also trying to predict my actions.
If I predict price goes down, I should short.
If I predict prices goes up, I should buy.
Even the parent comment to my question says "you get money in case of a merger or acquisition" which to me is a bigger analogue of the Bigger Fool theory.
I only make money if another company buys the company I have stock in which they would buy only if they expect to make money. In their case, possibly whoever buys the company can take dividends (as the new CEO) but it still looks like a bizarre thing to do (buy stock).