Dollars and Jens
Friday, October 10, 2003
 
I mentioned to my brother that, about the time he suggested this thing to me, I heard a guy on TV (Bob Sirott; Chicagoans may well have heard of him) mention that he doesn't understand why stocks will go down when the companies announce increased profits. So let's test the blog by pointing out that people buy and sell stocks based on what they think the company will acheive in the future, and only on what they have done in the past insofar as they think that's an indicator of the future. If I expect Microsoft to earn 25 cents per share, against 21 cents last year, and it reports 23 cents, then my assessment of its value is less than it was before the news came out.


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