← Back to context

Comment by CrimsonRain

18 days ago

If you think it's a problem, short NV or buy competitors who are not doing this or don't buy their share at all. If you're right, they'll get burned soon enough and it's none of your business!

To make money on financial markets it's not just about "if" but also "when" ... and even if I think it's problem (which I didn't say) i for sure don't know "when"!

  • Someone had a model combining shorting with investigative journalism, a while back. They'd short, then release evidence showing that the company was way overvalued, then make their money when the stock price dropped.

Markets can remain irrational longer than you can remain solvent.

  • Market is _never_ rational. If market followed rational logic, you could pre-calculate which stocks will be what price and never lose money.

    (Stock) market is, by definition, irrational. If you are scared of solvency, sell and hold money and/or gold.

    • > If market followed rational logic, you could pre-calculate which stocks will be what price and never lose money.

      The fundamentals are unpredictable, so even a perfectly rational planning (suppose such thing could exist) would lose money sometimes. Not in the long run, but long run doesn't matter if a single wrecked ship can wreck you.

      2 replies →

    • "(Stock) market is, by definition, irrational"

      I assume this is just your definition?

      Is weather irrational, because you cannot calculate it?

      Markets and weather are just too complex with too many unknowns to calculate it.

      1 reply →