Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1

One thing I hope you picked up clearly from the book: I don't believe many stocks GET significantly over- or undervalued. I believe most stocks are fairly valued. I think therefore that when the media begins to say something is overvalued -- particularly in a lemminglike fashion -- it is probably just "valued," and the media is scaring off people from investing in it, making it a good selection.

I do write that some people are momentum investors, but I don't recall the passage you've cited in quite the way you recall it. Perhaps you can quote verbatim what you're referring to. Again, I don't believe that even momentum investors necessarily are driving stocks to being "overvalued." My criticism of them is that they only look at price performance, and know little to nothing else about the company.

I believe for the most part that the market is "efficient" and that the prices you see out there are as fair as the price tags you find at your local Wal-Mart. For this reason, I reject purchasing stocks based on their "valuation."

Fool on,

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.