Top 2 Quotes & Sayings by Didier Sornette

Explore popular quotes and sayings by a French scientist Didier Sornette.
Last updated on September 19, 2024.
Didier Sornette

Didier Sornette has been Professor on the Chair of Entrepreneurial Risks at the Swiss Federal Institute of Technology Zurich since March 2006. He is also a professor of the Swiss Finance Institute, and a professor associated with both the department of Physics and the department of Earth Sciences at ETH Zurich. He was previously jointly a Professor of Geophysics at UCLA, Los Angeles California (1996โ€“2006) and a Research Professor at the French National Centre for Scientific Research (1981โ€“2006), working on the theory and prediction of complex systems. Pioneer in econophysics, in 1994, he co-founded with Jean-Philippe Bouchaud the company Science et Finance, which later merged with Capital Fund Management (CFM) in 2000. He left however Science et Finance in 1997 to focus on his shared position as Research Professor at the CNRS in France (1990-2006) and Professor at UCLA (1996-2006).

When herding behaviour among investors ramps up, a stock's or index's growth rate can increase faster than exponentially, leading to more herding. This positive feedback brings the system to a tipping point. About two-thirds of the time, a crash results.
Economic theory dictates that the value of a company is basically the present value of its future profits. To estimate Facebook's value through its future profits, we need to have a view on its user growth and how this will evolve in the next 10 to 50 years.
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