First of all, I thank you Sir, for bringing out the difference of being courageous and being a learned investor. Sir, I have a query on this. If we are invested in a fundamentally strong company, nothing has changed in the company, then why does the share price of that company go down, instead it must hold to its intrinsic value? Is it completely relatable to a market cycle period, or some other thing is also involved? I would be grateful if you could throw some light on this?
Stock prices reflect market perception, not just intrinsic value. Even strong companies can decline due to sentiment, liquidity shifts, or broader market cycles. In the short term, prices fluctuate; in the long term, fundamentals prevail.
First of all, I thank you Sir, for bringing out the difference of being courageous and being a learned investor. Sir, I have a query on this. If we are invested in a fundamentally strong company, nothing has changed in the company, then why does the share price of that company go down, instead it must hold to its intrinsic value? Is it completely relatable to a market cycle period, or some other thing is also involved? I would be grateful if you could throw some light on this?
Stock prices reflect market perception, not just intrinsic value. Even strong companies can decline due to sentiment, liquidity shifts, or broader market cycles. In the short term, prices fluctuate; in the long term, fundamentals prevail.
Right Sir👍