• volodya_ilich@lemm.ee
      link
      fedilink
      arrow-up
      9
      ·
      5 months ago

      As a hypothetical investor, why would I invest my money in a company that promises profit in 10 years, when I could invest in profits for the next quarter, then take back my investment + profit, and invest somewhere else with profit next quarter?

      • AA5B@lemmy.world
        link
        fedilink
        arrow-up
        1
        ·
        5 months ago

        Tesla is a a great counter-example. Before Musks true colors came out, Tesla stock went on a wild ride long before the company made a profit, and is frequently priced way above anything justifiable by current income or profit. It’s all based on hope for a long term plan to change the world and eventually make huge profits, rather than short term goals.

        As a hypothetical investor, if you stayed away from companies like Tesla, you would miss some stocks with the highest returns

        • volodya_ilich@lemm.ee
          link
          fedilink
          arrow-up
          1
          ·
          5 months ago

          A stock-price bubble is the opposite of a good example in my opinion. Dumb techbros hyping a company to the point where it has a higher capitalization than literal Volkswagen group, because the stock price kept inflating. What percentage of the stock owners of Tesla 4 years ago are the same as nowadays? I’d bet it’s low

      • Summzashi
        link
        fedilink
        arrow-up
        1
        ·
        5 months ago

        Are you actually this stupid or are you trolling? I just cannot imagine that someone could actually be this ignorant.

    • TheRealKuni@lemmy.world
      link
      fedilink
      English
      arrow-up
      3
      ·
      5 months ago

      Depends on the corporation. Silicon Valley, for example, is often all about the next quarter. Older companies that have been around longer have a longer view and tend to be more focused on long-term results.