From: Lee Daniel Crocker (lee@piclab.com)
Date: Tue Sep 10 2002 - 00:01:08 MDT
> (Dan Fabulich <dfabulich@warpmail.net>):
> [The other answers I'd received thus far generally agree with my
> assessment, but doesn't resolve my confusion as to how the market works.
> I'm not yet ready to jump in with Crocker and conclude that everyone
> participating in the stock market is irrational.]
That's not quite what I said--I said those who invest purely for
speculative stock-value churning are not serving their long-term
rational interests, although they'll likely make money in the short
term. In the long term, those who invest in companies that actually
produce things people want, make a profit, and distribute dividends
are the most rational. Investing in good old fashioned productive
businesses is not irrational in the least.
> You're not using the word "intrinsic" in the sense I used it. I used it
> in the sense that things have "intrinsic value" have value in keeping,
> having and using them, like toys and medicine. In this definition, things
> that have value *merely* by their capacity to make money don't have
> "intrinsic" value in the sense I mean.
The way I use the word, _nothing_ has intrinsic value except mass-energy.
Economic value is created by desire, and successful businesses are those
that produce what people desire (and market it well to increase desire).
And eventually, it will all come out as dividends.
-- Lee Daniel Crocker <lee@piclab.com> <http://www.piclab.com/lee/> "All inventions or works of authorship original to me, herein and past, are placed irrevocably in the public domain, and may be used or modified for any purpose, without permission, attribution, or notification."--LDC
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