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Old 02-07-2005, 08:00 PM
LA_Price LA_Price is offline
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Join Date: Feb 2004
Location: Merry old England
Posts: 41
Default Re: An example of why there is money to me made in the stock market

yes but many times the price of stock is not indicative of it's true value. Some companies sell at 50 to 60 times their earnings because of future predictions or hype which may never materialize . All people own then is dreams. They eventually crash like in the last tech bubble. Other times as when Warren Buffet bought the Washington Post Co. you could have sold the companies entire assets and it would have been worth more than what he paid if he bought all the shares. So I think discrepencies do seep through if you're good enough to spot them as investors like Warren Buffet are.
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