All outstanding shares of a company are owned by some entity or the other. All of them. Hence, most of these entities want the quoted share price to go higher. What about a person who founded the company 20 years ago? If he is cash-wealthy, I assume that he doesn't care too much about the share price.
Oddly, there are always naysayers who believe that the price will go down or that it will advance much less than that of other companies.
Oddly, at times there are investors who don't care much about the quoted share price as long as what is offered is substantially below the company's intrinsic value.
And such is the market. It is made of creatures, all of whom have different beliefs, desires and demands. Somehow, these three tend to interact with each other. Analysts, traders, bankers... all of them tend to have opinions. Most of them tend to believe that a well-managed company with a good product will do good in the long run. However, the most that investors tend to hold on to is for 5 or 7 years. Greed and fear start playing with them and they ache to sell out before they believe that prices will drop.
People are weird. They focus on the short term and they let feelings interfere with unemotional decisions. It's important to shut out the noise and jive to one's own rhythm.
Oddly, there are always naysayers who believe that the price will go down or that it will advance much less than that of other companies.
Oddly, at times there are investors who don't care much about the quoted share price as long as what is offered is substantially below the company's intrinsic value.
And such is the market. It is made of creatures, all of whom have different beliefs, desires and demands. Somehow, these three tend to interact with each other. Analysts, traders, bankers... all of them tend to have opinions. Most of them tend to believe that a well-managed company with a good product will do good in the long run. However, the most that investors tend to hold on to is for 5 or 7 years. Greed and fear start playing with them and they ache to sell out before they believe that prices will drop.
People are weird. They focus on the short term and they let feelings interfere with unemotional decisions. It's important to shut out the noise and jive to one's own rhythm.
No comments:
Post a Comment