You buy stake in _future_ dividends. For companies that don't have any dividend currently you just have to compensate for the time delay when calculating the va

You buy stake in _future_ dividends. For companies that don't have any dividend currently you just have to compensate for the time delay when calculating the value. If everyone would race to sell Google stocks for no reason, the price would quickly drop to a level where it would make huge sense to start buying. Imaging having a dividend to price ratio of 1000%. Even with no dividend, buying stocks (preferably with voting rights) in a company at a price to profit ratio of 1000% would be a great deal as it'd be a small thing to start paying dividends with those profit levels. This does not mean that there aren't overvalued stocks and physical assets which does not make sense to buy at the current price. Bubbles has occurred before...