Be ready for the Reboot. Subscribe to new articles via email... ยป

Private vs. Public Companies

Mark Jeftovic
By Mark Jeftovic / September 1, 2010

The Good News / Bad News Part

The good news is that all these factors: short term bias, emotions, panics and infotainment basically make a mockery of Efficient Markets and Rational Market Participants – and that creates valuation “errors” which real investors can capitalize on. These investors are the proverbial “smart money”, who step into the bedlam and “buy when there’s blood in the streets” and sell when everybody is euphoric.

They buy companies for a fraction of their intrinsic worth.

They are often ridiculed and usually solitary. They are the minority of market participants.

The bad news is that the for the majority of market participants, they collectively comprise “The Dumb Money”, which chases stocks after they move, sell out in panic after they crash, buy companies in hopeless disrepair because a talking head on television told them to, or are invested in yesterday’s fads because their fund managers followed the rest of the herd off a cliff. You are probably a member of this class. Sorry, but it’s true. So was I (once).

Previous123

About the author

Mark Jeftovic

Mark Jeftovic is the creator of Wealth.net, founder and CEO of Canadian domain registrar and DNS provider easyDNS.com and member of the indie rock sensations The Parkdale Hookers.

His personal blog is at markable.com

1 comment
JOP - November 15, 2010

Wonder if you would shed light on the following in order to compare:
1. What is the value of nation-state assets and holdings?
2. What is the value of corporate and transnational corporate assets and holdings?
Thank you

Reply
Click here to add a comment

Leave a comment:


Google Analytics Alternative