A note from Julia

P.168 It is a notion that assets have one rational price in a world where investors have different goals and time horizons. Example: Bubbles. Cisco stock rose 300% in 1999 to $60 per share. If you are a long-turn investor, 60 was the only available price to buy. What you don’t realise is that the traders who were setting the marginal price of the stock were playing a different game than you were. Sixty dollars a share was a reasonable price for the traders, because they planned on selling before the end of the day…

Julia The Psychology Of Money · April 23, 2024 Save to shelf
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