Showing posts with label Jim Grant. Show all posts
Showing posts with label Jim Grant. Show all posts

Tuesday, January 20, 2009

Is that the value of stock?

To suppose that the value of a common stock is determined purely by a corporation's earnings discounted by the relevant interest rates and adjusted for the marginal tax rate is to forget that people have burned witches, gone to war on a whim, risen to the defense of Joseph Stalin and believed Orson Wells when he told them over the radio that the Martians had landed.

- Jim Grant