“In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”
Investors sometimes confuse a volatile stock for a volatile business. When a stock is up or down by 25% or more after nearly every earnings report, it’s only natural to assume the company’s cash flows are similarly volatile. Sometimes, though, a company’s stock will move dramatically based on sentiment, geopolitical issues, or other factors even if the underlying business is stable.Not a Member Yet? You need a Gold Membership or higher to view the content on this page.
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