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If only because every person who owns NYT stock at a $950 million market cap expects it to go up - otherwise why hold the stock?
by reitzensteinm 15y ago
If only because every person who owns NYT stock at a $950 million market cap expects it to go up - otherwise why hold the stock?
- ebaysucks 15y agoAsset allocation is about relative performance and capital preservation in real terms.
- reitzensteinm 15y agoYou're right about that. I didn't consider people buying and holding expecting zero real returns, vs eg T-Bills which might offer negative. But my point was that you'd be merely matching an offer that they'd already implicitly turned down because they expect a better offer later - sell their share of the company at the current market cap. That can include capital preservation, e.g. maybe you'd rather have exactly 100% of your portfolio value in real terms in 20 years than 100% now, since you believe the market will go down.