Stock Market Basics
Despite computer programs and black boxes, it is still people who make stock markets. Because emotions are stronger than reason, fear and greed move stock prices up and down. Investor sentiment has a more pronounced impact on stock market prices than a company's fundamentals. When people are greedy or scared, they often will buy or sell stocks at foolish stock market price points. As you will learn, the stock market does not suffer fools gladly.
Warren recognized early on that the long-term value of stocks were determined by the economic progress of the business. As a company's economic value increases over time, so too will the price of the shares of the business. If, on the other hand, the company falters, the stock stock price will reflect this. Over shorter periods, the price of stocks will move up and down based more on emotions than economics.
Do you know the four investment principles Warren has typically used to make
outrageously successful trading decisions during his career? Find out...
outrageously successful trading decisions during his career? Find out...
