17-07-2014, 09:23 AM
(16-07-2014, 08:03 PM)Curiousparty Wrote: The key problem is CATALYST.
Companies can remained undervalued for years, even after u are no longer on this Earth...
Like I said, it really boils down to each of our investing mandate. Once, I did think like you that each stock has to have a catalyst for the stock price to rise and hit fair value. However, after reading research papers based on statistical evidence and all, over the long run such stocks would just normalise back to the mean. That said, even if it were to remain undervalued for years, at least every night I can rest well knowing full well that I bought a stock with an adequate mos.
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