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: Skeeter Bug who wrote (79096)	4/5/2000 5:30:00 PM
From: BGR	Read Replies (1) \| Respond to of 132070

SB, It is not simply a matter of native intelligence, it is a matter of information. Information equals value, and none of us can individually have as good intelligence as the market collectively has. So, when we simply cannot understand why the market behaved in a certain way, it is often because we do not have all the information and not because the market is irrational. Tiger management delivered underperformance for overleverage. Not a great example IMO. Regarding valuation, you write: a simple definition of of undervalued is stock that i feel will earn a higher % return on my investment, over the long haul and adjusted for risk, than any other investment alternatives. Now extend that to the market at large. Unless you feel that your feelings are somehow superior to the rest of the market, the market is always valued correctly. I hope I have not hurt your feelings by stating the obvious. What you have forgotten about the CSCO example is that CSCO's revenues will grow over time, whereas your yields will be fixed. In short, CSCO is a growth company. -BGR.