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Roughly speaking, the price per share of a company is a reflection of the expectations of the market about the future cash flows a company generates. The marke
by marc__1 6y ago
Roughly speaking, the price per share of a company is a reflection of the expectations of the market about the future cash flows a company generates.
The market is simply telling us that it expects Tesla to generate more cash flow (very different than accounting profit) than of GM.
If you believe otherwise you see something the market doesn't and therefore can profit handsomely
EDIT: wording
- ForHackernews 6y agoA wise man once said, "The market can remain irrational longer than you can remain solvent" I'm sure not betting against insane shit continuing in 2020.