4 ms·

Charlie Munger is worth reading and listening to. He once said in an interview that a person should only be allowed to make 20 trades in their lifetime. (Or

Charlie Munger is worth reading and listening to. He once said in an interview that a person should only be allowed to make 20 trades in their lifetime. (Or some smaller number.) His reasoning was that it would limit emotional influences when making investing decisions. I've been wondering if Microsoft's stock price is low due to the perception that they aren't sexy. Their corporate division is making loads of money and they are priced like a low margin commodity business. Of course, maybe their long term survivability is in question and so the stock is low. I would rather buy stock in Microsoft at its current valuation than buy stock in Twitter at its current valuation.

cosmicray 16y ago
> I've been wondering if Microsoft's stock price is low due to the perception that they aren't sexy. Stock prices are (usually) set based on two factors: The current earnings/revenue situation and future expectations. MSFT and APPL both have similar current earnings. Future expectations may be an entirely different matter. If twitter is being touted as a $10B corp, then someone must have some expectations of increased future value.
- yequalsx 16y ago
  In theory this is true but I think there are intermediate fluctuations that don't follow a rational principle. I think Warren Buffet is right when he says the market is not efficient. Maybe over a long period of time and across many industries it is but not necessarily for a particular stock.