A Quote by Benjamin Graham
A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.
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The underlying strategy of the Fed is to tell people, "Do you want your money to lose value in the bank, or do you want to put it in the stock market?" They're trying to push money into the stock market, into hedge funds, to temporarily bid up prices. Then, all of a sudden, the Fed can raise interest rates, let the stock market prices collapse and the people will lose even more in the stock market than they would have by the negative interest rates in the bank. So it's a pro-Wall Street financial engineering gimmick.
No matter what he does, one always forgives him. It does not depend upon looks, either – although this actual person is abominably good-looking – it does not depend upon intelligence or character or – anything – as you say, it is just it.
The reality is that business and investment spending are the true leading indicators of the economy and the stock market. If you want to know where the stock market is headed, forget about consumer spending and retail sales figures. Look to business spending, price inflation, interest rates, and productivity gains.
Having witnessed the success of Acadian Ambulance firsthand over the years, I became a champion for the employee stock ownership plan business model. This was easy to do based on the evidence that employee stock ownership plans are reliable, high-performing sources of retirement security.
Value in relation to price, not price alone, must determine your investment decisions. If you look to Mr Market as a creator of investment opportunities (where price departs from underlying value), you have the makings of a value investor. If you insist on looking to Mr Market for investment guidance however, you are probably best advised to hire someone else to manage your money.
In the financial markets, however, the connection between a marketable security and the underlying business is not as clear-cut. For investors in a marketable security the gain or loss associated with the various outcomes is not totally inherent in the underlying business; it also depends on the price paid, which is established by the marketplace. The view that risk is dependent on both the nature of investments and on their market price is very different from that described by beta.
The number one idea is to view a stock as an ownership of the business and to judge the staying quality of the business in terms of its competitive advantage. Look for more value in terms of discounted future cash-flow than you are paying for. Move only when you have an advantage.
I love the Knicks and Rangers, right, but you still have a responsibility to your shareholders. They're not there because they're fans. You don't invest hundreds of millions of dollars in a stock because you're a fan. You do it because you think that the business is going to increase in value, that the stock price is going to go up.
You need to focus on creating the actual value of the company, not just the theoretical value. The actual value comes from a great product that sells well and is ultimately profitable.
I believe that by releasing "passing interest/low keepsake-value literature" from the burden of physicality, you are actually releasing the words from their worst liability: the price and inconvenience of actual bookness.
Bloomberg does not cater to the Indian audience. It does display Indian stock indices, and during trading hours has a ticker tape of Indian stocks running across the bottom, but then so do most of the news channels.
A broker who discovers an undervalued stock does not advertise it until he has bought a large enough quantity without letting the price go up. When the brokers' connection with a stock becomes public knowledge, it is usually a sure sign of manipulation and that the broker is seeking to drive up the price.
iStockphoto was revolutionizing the stock photography industry, establishing a whole new business model and democratizing stock art for everyone. It made sense for the industry-leading stock image company to take iStock to the next stage of growth, serving all markets at every price point.
Remember that a share of stock represents a part of a business and is not just a piece of paper.
Stock price multiples are negatively correlated with real interest rates. As interest rates rise, the market multiple will fall.
In many college English courses the words “myth” and “symbol” are given a tremendous charge of significance. You just ain’t no good unless you can see a symbol hiding, like a scared gerbil, under every page. And in many creative writing course the little beasts multiply, the place swarms with them. What does this Mean? What does that Symbolize? What is the Underlying Mythos? Kids come lurching out of such courses with a brain full of gerbils. And they sit down and write a lot of empty pomposity, under the impression that that’s how Melville did it.
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