Right, but notice that wasn't the emphasis of the post I was responding to. OK, there was 1/2 a sentence that touched on profits as almost an afterthought.
The thing that sets me off about these threads is the (I believe sincere) thinking that 'well if that's the share price, it must be worth that much'. That's fine if you're speculating/trading but is absolutely wrong if you think what you're doing is investing.
> OK, there was 1/2 a sentence that touched on profits as almost an afterthought.
Are we reading different posts? The post you responded to repeatedly made the point that profits are one of the key builders of market confidence:
>> Firstly, say 5 years down the line, the holders have confidence that FB will still be making money, be profitable and be on the market.
...
>> They too must have confidence on FB that a further 5 years or more down the line, FB will be profitable and will be in the market and keep earning money.
...
>> So is FB really worth 900B, yes, if the holders keep holding it and FB keeps earning profits.
The thing that sets me off about these threads is the (I believe sincere) thinking that 'well if that's the share price, it must be worth that much'. That's fine if you're speculating/trading but is absolutely wrong if you think what you're doing is investing.