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Investing/Strategies / Retirement Investing
|Subject: Re: Stock prices in the next decade||Date: 3/7/2003 8:21 PM|
|Author: yobria||Number: 35846 of 81362|
Just in time hot dog delivery! What a concept. Very Japanese. I hate having to place my order and come back at the end of the week.
True, any company can be ruined with bad management. Maybe a better analogy is a single hot dog stand in Alaska. In summer, everyone's out buying hot dogs and the market value of the stand soars. Every winter people stay in, the hot dog stand is idle, and you couldn't give it away.
Everyone follows the herd and thinks short term, so the stand is never correctly valued. It's worth $100,000 based on cash flows, but its value is $1,000,000 each summer and $10,000 each winter.
So the key to wealth beyond your dreams is to know which season we're in. Warren Buffet thinks we're now in summer:
While TMF thinks (maybe) winter:
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