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Comment by JohnJamesRambo

4 years ago

If the SP500 stopped going up in value would you still be interested in the project?

Yes. The stocks in the SP500 sometimes go down in value, sometimes in the aggregate for a long time. Individually some of them go down forever.

If a stock goes down in value and it still pays a dividend it becomes more valuable for this. Setting that aside all stocks have a not very senior claim on assets. As the stock goes down sometimes it is worth less than the assets it has a claim to. At that point its better to buy up a controlling interest and sell the assets. Thats what private equity does. So yes I am interested when the value goes down.