Quotes About Market

The value of most high-tech products is determined by the cost of alternative solutions to the customer.

the market prices of quasi-commodities are not related to the costs in their own manufacturing area, but to the cost structure of the lower-cost competitors and their willingness to operate at certain margin levels.

Many companies enter businesses planning to capture only a small percentage of the market. Such plans are not conservative; they are extremely dangerous. They are strategies for failure. The only good plans and the only good marketing programs are those aimed at dominance, backed by sufficient resources to achieve it, and executed with precision.

Marketing people know the corporate position so well that they automatically develop pricing strategies compatible with it rather than with market needs.

Time is the deadly enemy of the technology business. Today's great idea is tomorrow's obsolete concept. The longer it takes a company to get its product to the market, the greater the likelihood a competitor will be there first. Big plans with extended schedules are a risk in any business,

Superman's cosmopolitan decision could be interpreted simply as DC Comics attempting to appeal to the global market for Superman stuff. Less cynically, though, one blogger said, "It's refreshing to see an alien refugee tell the United States that it's as important to him as any other country on Earth—which, in turn, is as important to Superman as any other planet in the multiverse.

How do you avoid overconfidence? By telling yourself at least a few times per year, 'The market is much smarter than I will ever be.

I see the supposed convenience of being able to trade ETFs throughout the day as a psychological disadvantage. Unless you are able to predict intraday market moves—a fool's errand if ever there was one—you are faced with the oftentimes paralyzing choice of exactly when to buy or sell.

The concept that all useful information has already been factored into a stock's price, and that analysis is futile, is known as 'The Efficient Market Hypothesis' (EMH).

Owning the U.S. "market" means the whole shooting match—the Wilshire 5000. The granddaddy of all "total-market" funds is the Vanguard Total Stock Market Index Fund. With rock-bottom expenses of 0.20%, it is a superb choice. Since its inception in 1992, it has done an excellent job of tracking the Wilshire 5000

So the twentieth century has seen three severe drops in stock prices, one of them catastrophic. The message to the average investor is brutally clear: expect at least one, and perhaps two, very severe bear markets during your investing career. Long-term

Investors cannot earn high returns without occasionally bearing great loss.

Combating myopic risk aversion is the most difficult emotional task facing any investor. I know of only two ways of doing this. The first is to check on your portfolios as infrequently as possible. ... The other way to avoid myopic risk aversion is to hold enough cash so that you have a certain equanimity about market falls.

When all is said and done, there are only two kinds of investors: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third kind: those who know they don't know, but whose livelihoods depend on appearing to know.

Tasa de descuento alta = riesgo percibido elevado, alta rentabilidad, cotización de acciones depreciada. Tasa de descuento baja = riesgo percibido bajo, baja rentabilidad, cotización de acciones elevada.

Why the correlation between popular interest and subsequent low returns? Simple: Driving the price of any asset higher requires the entry of new buyers, and when everyone is invested in stocks, real estate, or gold, there's no one left to join the party; the entry of naïve, inexperienced investors usually signals the end.

Note how small stocks have had higher returns than larger stocks, but that they also have higher risks. In both the Great Depression and the 1970s bear market, small-stocks sustained higher losses than large stocks. In addition, the small stock advantage is extremely tenuous—it's less than a percent-and-a-half per year, and there have been periods of more than 30 years when large stocks have bested small stocks. For these reasons, the small-stock advantage is controversial.

In common parlance, the shares of good companies are called "growth stocks," and those of bad companies are called "value stocks.

The most fundamental characteristic of any investment is that its return and risk go hand in hand. As all too many have learned in the past few years, a market that doubles rapidly is just as likely to halve rapidly, and a stock that appreciates 900% is just as likely to fall 90%.

Thus, the logic of the market suggests that: Good companies are generally bad stocks, and bad companies are generally good stocks. Is this actually true? Resoundingly, yes. There have been a large number of studies of the growth-versus-value question in many nations over long periods of time. They all show the same thing: unglamorous, unsafe value stocks with poor earnings have higher returns than glamorous growth stocks with good earnings. Probably

economist Henri Truchy noted: We judged it better to content ourselves with the untroubled possession of the domestic market than to risk the hazards of the world market, and we built a solid fortress of tariffs. Within the boundaries of this limited, but assured market, the French live calmly, comfortably enough, and leaving to others the torment of great ambition, are no more than spectators in the struggles for economic supremacy.16

At one time or another, most of us have seen a plot of capital wealth looking something like Figure 1-1, demonstrating that $1 invested in the U.S. stock market in 1790 would have grown to more than $23 million by the year 2000. Unfortunately

La mejor época posible para invertir es cuando el cielo amenaza tormenta, puesto que los inversores descontarán los ingresos futuros de las acciones a una tasa muy elevada.

The moral of the story is: never argue with the market. Your health and peace of mind are always more important than any stock.