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stock price??
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<blockquote data-quote="moreluck" data-source="post: 103042" data-attributes="member: 1246"><p>Traveler....I especially liked.....</p><p></p><p></p><p>Think back to the thwackings 3M and United Parcel Service took earlier this month. Are either of these businesses really worth 15% or 20% less than they were at the beginning of the month? Has the stream of future cash flows and dividends diminished that greatly? Are customers fleeing to competitors, or simply expiring from the planet? Are these companies' assets materially impaired? Hardly. The actual value of the business is at the whip's handle--moving to and fro ever so slightly. The market price is the end of the whip--and that whip has stung the short-term crowd badly.</p><p></p><p>Never forget that the market price of a stock at any given moment is where the weakest current owners and the most indifferent group of buyers meet. I'm not the least bit concerned that 3M has been marked down from $84 to $69 in the past month. Mr. Market can't have my shares for less than $110. The good long-term investors--I heard many of them speak at this year's Morningstar Investment Conference--don't sell at a 20% loss, but they do go back and aggressively review their investment case. If the fundamentals are unchanged, they hold or buy more. If the business is not as strong as they expected--that is, if they made a mistake analyzing the business in the first place--then, and only then, will they sell.</p></blockquote><p></p>
[QUOTE="moreluck, post: 103042, member: 1246"] Traveler....I especially liked..... Think back to the thwackings 3M and United Parcel Service took earlier this month. Are either of these businesses really worth 15% or 20% less than they were at the beginning of the month? Has the stream of future cash flows and dividends diminished that greatly? Are customers fleeing to competitors, or simply expiring from the planet? Are these companies' assets materially impaired? Hardly. The actual value of the business is at the whip's handle--moving to and fro ever so slightly. The market price is the end of the whip--and that whip has stung the short-term crowd badly. Never forget that the market price of a stock at any given moment is where the weakest current owners and the most indifferent group of buyers meet. I'm not the least bit concerned that 3M has been marked down from $84 to $69 in the past month. Mr. Market can't have my shares for less than $110. The good long-term investors--I heard many of them speak at this year's Morningstar Investment Conference--don't sell at a 20% loss, but they do go back and aggressively review their investment case. If the fundamentals are unchanged, they hold or buy more. If the business is not as strong as they expected--that is, if they made a mistake analyzing the business in the first place--then, and only then, will they sell. [/QUOTE]
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