AI
Wednesday, April 03, 2002 7:44:18 AM
Shouldn't the above then read: Realized gains instead of Return? I hope that when the price rose of the stocks that you then decided to sell, the inventory that you held also gained about the same amount 
Here also become our different views visible
To me, CASH rules. Stock, well, it's just stock. In the old days you could hang it on your wall, but even that is no longer possible. With stocks, I have a double standard. If a stock gains, then I regard it as "not real". I.e. it is only when we open the box, and take a look at the cat, that we see whether it is alive or dead. On the other hand, if my stocks loose in value, then I see this this as a real loss. And will act accordingly.
This is a good moment to vent one of my gripes
There is always talk of "market cap". This is complete and utter BS IMHO.
Just imagine, a company has issued 100 shares for $1 each. The company has a market cap of $100. Now one share is sold on the open market for $1000. Suddenly the market cap of the same company jumps to $100,000.- And all the shareholders gratulate each other, start buying new cars etc, because their shares have miraculously jumped 1000 fold in value.
The next day another shareholder wanted to sell one share, unfortunately there were no buyers, just one who was willing to pay $0.10. That day it's a news item that the market cap of $100,000 has vanished!, gone, zap, nada. And all the people wonder were all that money went. Well, wake up!, that money was NEVER THERE!. It did NOT EXIST, it was thus also NOT LOST!.
OK, end of rant
But I think you do see where my preference for CASH comes from
Best,
Rien.
Here also become our different views visible
To me, CASH rules. Stock, well, it's just stock. In the old days you could hang it on your wall, but even that is no longer possible. With stocks, I have a double standard. If a stock gains, then I regard it as "not real". I.e. it is only when we open the box, and take a look at the cat, that we see whether it is alive or dead. On the other hand, if my stocks loose in value, then I see this this as a real loss. And will act accordingly.
This is a good moment to vent one of my gripes
There is always talk of "market cap". This is complete and utter BS IMHO.
Just imagine, a company has issued 100 shares for $1 each. The company has a market cap of $100. Now one share is sold on the open market for $1000. Suddenly the market cap of the same company jumps to $100,000.- And all the shareholders gratulate each other, start buying new cars etc, because their shares have miraculously jumped 1000 fold in value.
The next day another shareholder wanted to sell one share, unfortunately there were no buyers, just one who was willing to pay $0.10. That day it's a news item that the market cap of $100,000 has vanished!, gone, zap, nada. And all the people wonder were all that money went. Well, wake up!, that money was NEVER THERE!. It did NOT EXIST, it was thus also NOT LOST!.
OK, end of rant
But I think you do see where my preference for CASH comes from
Best,
Rien.
Best,
Rien.
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