Quote:
Originally Posted by thingstodo
My sister-in-law tells me that the value of a stock has more to do with management style than actual value.
|
The market isn't rational, which is why it isn't predictable. The value is whatever people are willing to buy/sell for, as that's the definition of value.
I can't help but wonder how things had been if I had purchased Bitcoin at something like $0.10 back when I first heard about it. I thought about putting some trivial amount of money like $100 into it, but figured I'd rather not loose $100 on something that will ultimately be worthless. Could have made out like a bandit in the meantime though. Who'd have predicted a worthless currency would fetch 17,000 to 1 against the dollar? That's the irrational market at work.