> Why are we using the opinion of one random person to determine the value of a company
Please don’t invent strawman positions and reflect them on me. I said nothing of the kind.
Of course the company’s worth wasn’t what is implied by the peak trade.
But that price wasn’t set just by the peak buyer. Out of all the other shareholders and shares, nobody was offering a sale on that venue at a lower price.
Outside of all the idiosyncratic psychology of each individual, in aggregate, the market did “think” it wasn’t worth selling leading up to that point.
Then confidence began breaking.
Mania is mania. Bubbles are bubbles. They are not rational, but they are real, not the result of one person or two. Not the result of one peak trade.
Large groups of people start thinking something can’t come down. For a moment in time, a lot of people thought it wouldn’t (at least “yet”).
How far mania goes is what peak price reveals. That price is still a measure of the whole market at that moment.
Please don’t invent strawman positions and reflect them on me. I said nothing of the kind.
Of course the company’s worth wasn’t what is implied by the peak trade.
But that price wasn’t set just by the peak buyer. Out of all the other shareholders and shares, nobody was offering a sale on that venue at a lower price.
Outside of all the idiosyncratic psychology of each individual, in aggregate, the market did “think” it wasn’t worth selling leading up to that point.
Then confidence began breaking.
Mania is mania. Bubbles are bubbles. They are not rational, but they are real, not the result of one person or two. Not the result of one peak trade.
Large groups of people start thinking something can’t come down. For a moment in time, a lot of people thought it wouldn’t (at least “yet”).
How far mania goes is what peak price reveals. That price is still a measure of the whole market at that moment.