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Showing posts with label supply and demand. Show all posts
Showing posts with label supply and demand. Show all posts
Monday, 8 April 2024

Before Investing, You Should Understand What Drives the Price. It’s Always About Supply and Demand

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Before investing in any stock, piece of real estate, cryptocurrency or business, you need to understand what drives the supply and demand be...
Tuesday, 2 May 2017

Industry Capacity determines the competitive environment in an industry.

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Limited capacity gives companies more pricing power as demand exceeds supply. Excess capacity results in weak pricing power as excess...
Wednesday, 22 February 2012

Investors will frequently not know why security prices fluctuate. Must look beyond security prices to underlying business value.

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Security prices sometimes fluctuate, not based on any apparent changes in reality , but on changes in investor perception. The shares of ma...

Security Prices Move Up and Down for Two Basic Reasons: Business Reality or Supply and Demand

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Security prices move up and down for two basic reasons: to reflect business reality (or investor perceptions of that reality) or  to refl...
Wednesday, 31 March 2010

Buffett (1978): Commodity type businesses must earn inadequate returns except under conditions of tight supply or real shortage

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In this write up, let us see what Warren Buffett has to say to his shareholders in the 1978 letter: " The textile industry illustrate...
Tuesday, 2 February 2010

The stock market provides a market for setting prices based on supply and demand

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More about the stock market The stock market provides a market for dealing in listed shares, and for setting prices based on supply and d...
Friday, 22 January 2010

What drives prices to change?

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In the long run, yes, definitely the fundamentals or value. But between now and that distant tomorrow, the answer is supply and demand.  ...