A while back I wrote a post about how the gap between 52 week high and low prices presents an opportunity for investors in public markets. I mentioned that this simple observation (the huge gap between yearly highs and lows) is all the evidence you need to debunk the theory that markets are efficiently priced all the time. I think the market generally does a good job at valuing companies within a range of reasonableness, but there is absolutely no way that the intrinsic values of these multibillion dollar organizations fluctuate by 50%, 80%, 120%, 150% or more during the span of just 52 weeks.
Portfolio Turnover--A Vastly Misunderstood Concept
Portfolio Turnover--A Vastly Misunderstood…
Portfolio Turnover--A Vastly Misunderstood Concept
A while back I wrote a post about how the gap between 52 week high and low prices presents an opportunity for investors in public markets. I mentioned that this simple observation (the huge gap between yearly highs and lows) is all the evidence you need to debunk the theory that markets are efficiently priced all the time. I think the market generally does a good job at valuing companies within a range of reasonableness, but there is absolutely no way that the intrinsic values of these multibillion dollar organizations fluctuate by 50%, 80%, 120%, 150% or more during the span of just 52 weeks.