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"buy APPL and expect AAPL to double in 1 year." Big error. You can predict a stock doubling in value a year in advance? Your numbers are less shocking when yo
by nnnnnnnn 14y ago
"buy APPL and expect AAPL to double in 1 year."
Big error. You can predict a stock doubling in value a year in advance?
Your numbers are less shocking when you plug in more reasonable expectations, say 6% market index instead of 200% home run.
- westicle 14y agoThe actual numbers here are irrelevant; gp was providing a hypothetical in which it makes sense to sell a stock. If exaggerated numbers make the hypothetical concept easier to grasp I don't think it detracts from the example to use them.
- tisme 14y agoIf you're going to buy one stock it doesn't really matter how much another stock will increase in the next year ;) (I'm prety sure that Appell Pete Corp would be psyched if enough people make this mistake).
- fleitz 14y agoBecause no one looking for market index returns would hold Zynga in anything other than an index fund. If you hold zynga you're looking for a homerun, or a trader. Thus I used numbers that would appeal to the type that might hold Zynga stock. The type that had a risk profile involving losing 90% of the stock's value in 6 months.