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15-06-2023, 12:42 PM
#151
Originally Posted by ValueNZ
Are you a believer in efficient market hypothesis? Price=value 100% all of the time?
No as KK says.
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15-06-2023, 01:53 PM
#152
Originally Posted by kiora
No as KK says.
"If you had to sell shares for an emergency you wouldn't be selling them at a "loss".You would be selling them for what they are worth".
This statement implies you believe in EMH, since if you are made to sell at a point you could be selling them when they are undervalued.
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15-06-2023, 06:20 PM
#153
Originally Posted by ValueNZ
"If you had to sell shares for an emergency you wouldn't be selling them at a "loss".You would be selling them for what they are worth".
This statement implies you believe in EMH, since if you are made to sell at a point you could be selling them when they are undervalued.
No it doesn't imply I believe in EMH.I would be selling them for the emergency. The market value is what it is: undervalued /overvalued doesn't come into it. It is their value on the day.
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15-06-2023, 06:29 PM
#154
As the recent discussion about selling shares in case of an emergency expense, more often there's flip side. What about the investors that don't want a dividend because they don't feel they need the cash flow? What if a person does not expect to upgrade or buy a new car until 2 or 3 years time, yet they've been receiving dividend payments where as Buffett says, how can you be so certain that the individual can reinvest those cash proceeds in a manner that does better than owning the shares instead?
I don't subscribe to the belief that great companies always pay a dividend. Look at the tech stocks that trade in the US exchange. It's very clear the CEOs focus is less about dividend payments and more about 'increasing shareholder value' ; the former is a draining of capital of the shareholder's equity. You can't have it both ways.
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15-06-2023, 07:44 PM
#155
Good evening!
Thank you to everyone who contributed to this thread. Some fascinating replies.
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