- You do not have enough time to estimate the intrinsic economic value of every common stock for every moment of every trading session.
- The competitive, open-outcry, price-auction markets continuously provide bid and ask price quotations.
- price multiples such as the price/earnings, price/book value, price/dividends, price/cash flow, price/sales and other accounting ratios.
- Stock pricing conventions vary in applicability and popularity.
The stock market participants at the price-setting margin and occasionally the market as a whole are exceedingly irrational. The most important that concerns us is that, in stock market investing, no bidding system can ever replace human judgment and interpretation of the facts based on intelligence, knowledge, and experience.