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> The stock is trading at 166 times estimated earnings over the next year, 20 times book value and seven times sales. This will be an unpopular opinion, but th
by HenryKissinger 6y ago
> The stock is trading at 166 times estimated earnings over the next year, 20 times book value and seven times sales.
This will be an unpopular opinion, but there should be more barriers to entry to trading securities on the markets. The hyper democratization of the stock market will only increase the frequency and the magnitude of stock bubbles, which distorts the markets. This is because most people are fad followers. Herd behavior makes markets inefficient.
- vmception 6y agoYou are reacting to a symptom of a problem. A bigger contributor to the problem is that the universe of investible assets is too small because the barrier to issue and list securities is too high, which corrals capital into a small corridor of things to buy.