Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (68384)	9/29/1999 5:21:00 PM
From: re3	Read Replies (1) \| Respond to of 132070

<<<<<<The profs who had always lost money in the market. <g> yep, i remember this : student : sir, does having a phd in finance help you understand the market better prof : definitely, it helps me understand why I LOST money... i still think the amzn model is particularly puzzling, for a kid will hear Mr B on tv say he isin't concerned with making $ now...other firms at least pay this concept a little lip service <g> ike

To: Knighty Tin who wrote (68384)	9/29/1999 6:41:00 PM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

Mike, >>When my professors used to preach Modern Portfolio Theory and The Efficient Market Hypothesis like they were handed down from God and printed on golden stones, I was the only one who poked holes in these silly concepts.<< I've always felt that the problem with many economists and finance professors is that they fall into the trap of trying to fit everything that's going on in the system into the neat little model they know more than anybody else about. So despite their brilliance, they often fail to see some of the reality. What's the saying, "To a man with a hammer every problem looks like a nail". It's sort of like the Glassman model. If you lower the risk premium to almost zero, the models will tell you that stocks are worth 100 times earnings. What the models don't tell you is that long before then your business is selling at so far above its replacement cost that everybody and his mother is going to direct capital there, come public, lower the returns on capital and drive down stock prices. Wayne

To: Knighty Tin who wrote (68384)	9/29/1999 9:28:00 PM
From: re3	Read Replies (4) \| Respond to of 132070

michael, the worst thing about these zee shops for us canucks is we have to hear zee pronounced all wrong... its zed, you stupid yanks, zed...proper Queen's English is zed... have a pleasant tomorrow ike