Yiwu,
Greenspan said,
<<
Something that Greenspan described as "the lottery principle" is at work
in the world of Internet stocks. Just as in a lottery, he said,
investors are willing to pay a premium when the potential payoff gets
high enough.
"What that means is when you're dealing with stocks, the possibilities
of which are, either it's going to be valued at zero or some huge
number," he said. "You get a premium in that stock price, which is
exactly the same sort of price evaluation process that goes on in a
lottery.">>
huh!?
If I go down to the 7-11, I can pay $2 for a shot at $10M ... sure, the odds stink, but at least I know I'll get $1.20 back - statistically speaking of course. : )
AG is dropping a gear here. He's got that same $1.20 payout selling not for $2, but for $10, or $20, or more. How long before rare tulip bulbs recovered from their peak prices in the 1630s in Holland (hint: I think we're still waiting ...).
Peter |
