RE: What does the stock market supply?

From: Rafal Smigrodzki (rms2g@virginia.edu)
Date: Fri Sep 13 2002 - 13:46:19 MDT


Emlyn wrote:

> Many people appear to value stock purely for the reasons stated
> above. Note that the company that issued the stock does not directly
> affect these sock holders at all. They may as well be trading
> baseball cards.

### In the long run those investors will on average make not much more much
money than traders of baseball cards (unless they can predict the bursting
of bubbles in advance).
-------
>
> Sometimes people value stock at least partially for some reason
> directly related to the company.

### In the long run they will make as much money as allowed by the value of
the company, be it in dividends or in sale of stock. Irrational boom and
bust cycles will hardly matter to them. See Warren Buffett.

Rafal



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