Just for Laugh ...
References from Pg. 36, invest, the sundaytimes, jan 16, 2011, by Goh Enng Yeow
A matter of perception
How a stock performs will depend in a big way on investors' expectations, rather than the income which its business may be making for them.
Keynesian beauty contest
Read? Keynesian beauty contest
Keynes believed that similar behavior was at work within the stock market. This would have people pricing shares not based on what they think their fundamental value is, but rather on what they think everyone else thinks their value is, or what everybody else would predict the average assessment of value is.
This is where Keynes turned out to be genius and became the ultimate successful stocks investor.
"One of his lesser-known talents was the ability to make vast sums of money on the stock market. At the time of his death, Keynes’ net worth—almost entirely built through successful stock investments—amounted to the present-day equivalent of more than $30 million, and the college endowment fund he managed had massively outperformed the broader market over a two-decade period. Keynes was a member of that rare breed—an economist who flourished not only in the rarefied heights of ivory tower academia, but also amidst the bustle and hubbub of the financial markets." (Source: From the Inside Flap)
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