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How Headlines Cherry Pick Numbers to Sound Dramatic If the absolute difference is not impressive, use the percent difference. If the percent difference is not
by csours 9y ago
How Headlines Cherry Pick Numbers to Sound Dramatic
If the absolute difference is not impressive, use the percent difference.
If the percent difference is not impressive, use the absolute difference.
In April 2007 Domino's share price was around $32 before it went to $2 (which I can't even find in the stock price graph, the lowest I see is around $3)
If you go from a stock price of ~$20 to ~$180, that's a 9x increase in stock value.
So the secret of 90x growth is to first drop from a reasonable value to trash, then grow again.
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Nitpicking aside, Domino's really has had an amazing turnaround, and it seems to be driven by focusing on the customer, not on share price and cost cutting.
- jakear 9y agoNot really sure how stocks work, but isn’t the percent difference the only thing that matters? If I invest X when it’s $2, I get 90X now. That’s all I care about. On the other hand, the absolutes are somewhat meaningless right? If they wanted the absolute numbers to be bigger/smaller they can just split/coaelece accordingly.
- csours 9y agoSure, if you happened to buy in at the absolute lowest price, you would see a 90X change, but most people would have bought either before or after the absolute lowest. I will leave it as an exercise to the reader to figure out the volume/value calculations. The headline comments are just something to look out for. If you are told one, check the other. For stocks, check the context and history.