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Honestly, it has little to do with finance, and much to do with hype. It's not about fundamentals. It's about what the stock will be trading at in a month. If t
by dkokelley 14y ago
Honestly, it has little to do with finance, and much to do with hype. It's not about fundamentals. It's about what the stock will be trading at in a month. If there was a track record of dog crap selling for twice its value every week, you would be stupid not to buy, right?! Sometimes there's just a bubble of one.
- aqme28 14y agoThis kind of trading is called growth investing[1] and is very common and is still popular within the financial world, despite the occasional setback. [1]: http://en.wikipedia.org/wiki/Growth_investing http://en.wikipedia.org/wiki/Growth_investing
- tomkarlo 14y agoThere's growth investing, and there's pure speculation (which may or may not involve growth companies.) He seems to be talking about the latter - buying in the hope of a "greater fool". Growth investing is based upon the idea that the purchased business will grow and the stock price will rise over time as a result.