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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.16+0.2%Dec 26 9:30 AM EST
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To: Eric who wrote (56848)1/22/2002 12:56:36 PM
From: Stock Farmer  Read Replies (2) of 77400
 
A stock is worth what people are ready to buy it at every instant in time.

Exactly.

Not a penny more, not a penny less.

As investors, our task is to determine in the present whether what the stock is worth is greater or lesser than what owning it will return to us, measured in retrospect at some time in the future.

So it is somewhat academic to discuss what a stock is worth today in and of itself. Because there is no debate about that. It is worth what it's worth. Which by itself leaves precisely zero room for profit, except to the degree that we bought it in the past and sell in the moment to realize gain.

But going forwards this instantaneously correct worth becomes instantaneously incorrect to varying degrees and in varying directions as time unfolds.

Which introduces the somewhat less academic question as to why, how and when it may or may not change in worth as the future unfolds. The conclusion of which is generally extrapolated back to what it is "really worth". Which isn't what it's worth. Really.

Generating some interesting discussion. Really.

Perhaps when we are older and on the verge of senility we will find it purposeful to talk about what the price of a stock is or used to be. I hope to live that long and have so few cares at that age.

But not today. Prospective future worth matters more to me. At least for the moment :o)

John
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