An analogy for recent Apple and Netflix fluctuations

http://beginnersinvest.about.com/od/undervaluedovervalued/a/mr-market-benjamin-graham.htm

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3 thoughts on “An analogy for recent Apple and Netflix fluctuations

  1. analogy is poor. mr market is not random in the case of apple. a random walk analisis will show that easily. altho in this one case. with apple having been the most hold company by hedge funds. it really was as if apple was mr market. when apple returns to a percent of “hedge funds holding” below the market mean. only then would i consider the patient to be in a depressed state.

    • I still believe the analogy is good. If one looks at the time variance of Price-to-earnings and Price-to-book ratios one can see that “Mr. Market” is moody. This is true for all 5000+ traded securities.

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