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Stocks have inherent value as well, due to dividends. Price growth is not the only way to make money in the market.
by nightski 6y ago
Stocks have inherent value as well, due to dividends. Price growth is not the only way to make money in the market.
- nerfhammer 6y agoalso, book value, though it's usually much smaller than market cap. if a stock ever fell below its book value you could buy it out and liquidate its assets to make money, so the book value should be a price floor for the stock.
- sgerenser 6y agoThis is extremely uncommon these days, but back in the dark days of the 1980s buying stocks below book value was a common way that people like Warren Buffet made a lot of money.