Long-Term
Long-Term There’s an old joke on Wall Street that investors like to say that they invest with a long-term mindset. It’s just that long-term means only until the next bear market. Stock is a claim on a company’s assets and future earnings. There are a bunch of different ways to estimate what a stock is worth, but part of the input is going to be an estimate of future earnings. This sort of thing is fascinating because obviously we don’t know what the company’s future earnings will be. We can only guess. Looking at a company like Tesla, it seems that the market has been pricing in strong growth for several years. A company like Apple might have a less volatile stock price because the earnings are more consistent and easier to model. If the cost of a component in an iPhone goes up, analysts can adjust their expectations relatively…
