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Basically no stocks are worth their price today, if there was a condition that you weren't able to sell the stocks after buying nobody would pay the current pri
by username90 6y ago
Basically no stocks are worth their price today, if there was a condition that you weren't able to sell the stocks after buying nobody would pay the current prices on stocks. The only reason they are valuable is because you can sell them later to the next loser.
Take Walmart for example, it would take 70 years for you to get back your money from the stock from its dividends which are extremely stable. Do you think that is worth it? No, you pay for the stock since you know someone else will also pay for the stock when you sell, not because you want to get those sweet dividends.
- ramblerman 6y ago> it would take 70 years for you to get back your money from the stock from its dividends which are extremely stable. Why are u valuing a stock by its dividends alone? There are stocks without dividends. I agree we are in a bit of a bubble right now, but your valuation method seems a bit lacking. Walmart has a P/E of 20 which while also too basic on its own would give you a far more realistic 20 years.