[Por_sha911]

Originally Posted by svandamme

Stock value has never been a real measure of worth of anything.
people jump on the bandwagon , Stocks get inflated..

Then some people cash in.. get rich even... and at some point stock deflates.. and people who were last to buy into it... well, they loose.

Happened with Tulips back in the days in Amstedam
Happened with L&H in Flanders..
Gold prices

Stock value is only relevant to the owner, at time of buying or selling it.
All the rest, is virtual money , it's not real!
It's simply based on "expectation" and expectation quite often is set way to high.

In the end , the only thing that matters, is the value when a company is bought up by another one , because companies typically do not buy on emotion to flip, but buy when they think they can
- do a bargain
- expect future profit to cover the purchase price
- Need something that company has (Tech/IP, real estate, subsidiaries)


Might as well invest in a ponzi scheme.. and then state "it must be good, because look at home much money I made so far" when some as an early investor , you managed to get good money out of the scheme...

Or, we can boil it all down to 4 words "the another sucker principle"