How the media CREATES the matrix in regard to finance
Be it CNBC putting out hours of "information" regarding "business" or yahoo with their constant alerts of "someone" believing the market is "due for a correction" for this xyz reason(based on no evidence which is then quite obviously bs if there is no evidecne)....but they will constantly create these headlines and bs articles that for one just entering finance or investing....they will learn just by seeing it constantly displayed all the time with these questions...that 1)these people"know" something and 2)this is how the market works.
You just have to find the guy who says something is going to happen and then it happens...then OMG he was right the market corrected. Maybe not 10% but it corrected! lol
The market doesn;t work like that.
Outside of the MAtrix created by media and CNBC, business is VERY BORING.
People get up, they go to their jobs, and then they go home and do what people do.
What the media does though is talk up stocks(papers showing one owns piece of a business and its POTENTIAL future NOT guaranteed to be in existence 1 year from now) as every decade 20% of business's publicly traded go out of business or taken off the exchange.
The thing is some other company comes out with an IPO and becomes a stock and the GAME continues.
But the GAME is quite easy to figure out once you learn how to think yourself.
1) Most stocks are garbage. Meaning, no matter how cheap they get, the business offers nothing in terms of potential growth or high moat. It offers something that can be easily copied.
2)Most stocks especially today are very expensive. WHY? Well, people need to learn that the average person only MAKES SO MUCH MONEY and that money can only be spent in so many places after basic necsessities are met. So ALL THESE COMPANIES in the market are all after the same cheese.
The game is to find the company that the market(again, NOBODY IS BEHIND THE CURTAIN) is making a mistake on. At first, it won;t make sense to you. HOW can this company be cheap. SURELY if it was worth more, IT would be worth more.
Ahh....that is how you have been programmed to think in the matrix and is the reason people don;t look to achieve multi-baggers. They can;t concieve that market can so misvalue a business.
But all it takes is to look i comparison to how the market is valuing one business in the same area as yours and compare it to a company you find riiculously cheap and realize...wow the market DID F up
One must also stop thinking of the market and stocks as gambling and ACTUALLY treat it like you are buying a business. That you want to own this business because you believe it will continue to BE IN business in the future.
If one just is ooking to make 10% or whatnot, but not sure if the business will exist in 10 years....just ridiculous. Go to Atlantic city and bet that money if you don;t understand why the business will be aorund. There is no way to calculate where "the market" is going to price a business that has no REAL fundamentals to back it up. Those stocks are just gamed.
Under Armour has had a good last 48 months. It has gone up from a low of 12/share in 2009 to 163/share Today(pre-split price). That is a return of more than 1000% i just 4 years.
SO CLEARLY from this the market MISVALUES things all the time or in a way, so "efficiently" prices a company for every worst case scenario, THAT GREAT oppurtunities to buy a business for dirt cheap based on its future potential CAN ARISE and occurs all the time.
Deckers is STILL currently trading at 1/3 the price of Under Armour. These two companies though over the next 36-48 months are going to most likely make the same amount of money.
Do I know the exact future, meaning do I know for sure that Deckers will sell UGG boots next year as well as they sold it this year? Do I know that by the time double profit margins kick in over the next 36 months, that UGGS will not have lost fashion?
No, its the futre. It is the unknown.
But one can use evidcne of more than a decade of popularity that the success will continue and therefore THIS company deserves a much higher premium as the idea of it GOING OUT OF BUSINESS or making less money over the next 36 months is UNLIKEY and in actuality, the company is projecting to make more than double the money they are currently making today with no real necessity of growth for that to happen due to replacing sheepskin with UGG PURE which over 90% of consumers can not tell the difference between the two.
The MAtrix makes you think SOMEONE knows better. The answer is not true. The answer is everything is relative. Something worth something to you can be worth less to someone else. But if you have fundamental reasons and EVIDENCE that yours is true, well, over time, that persons opinion is not going to matter as more and more people realize YOUR truth.