The Roman philosopher Seneca wasn’t talking about the stock market when he wrote that “Time discovers truth,” but he could have been. In the long run a stock price will reflect a company’s (true) intrinsic value. In the short run the pricing is basically random. In this podcast, Vitaliy looks at two historical examples of how the market got stock market valuations wrong in the short term, but right in the long term.
You can read this article online at: https://investor.fm/the-market-right-now-doesnt-care-how-fantastic-your-stocks-are/
Disclosure: Read this before you buy your next stock
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