Your use of the phrase “fair market value” is a large red flag.
I’ve been speculating in stocks for 35 years. One of the hardest lessons I needed to learn was to not believe that last year’s prices were fairer than today’s prices.
Betting on mean reversion occasionally makes sense, but I’ve learned to only do it after careful analysis of the fundamentals (earnings, book value, etc).
By “fair market value,” I just mean value at the long term mean valuation. Do you happen to have numbers on what percent of the time values did not revert to the mean?
Your use of the phrase “fair market value” is a large red flag.
I’ve been speculating in stocks for 35 years. One of the hardest lessons I needed to learn was to not believe that last year’s prices were fairer than today’s prices.
Betting on mean reversion occasionally makes sense, but I’ve learned to only do it after careful analysis of the fundamentals (earnings, book value, etc).
By “fair market value,” I just mean value at the long term mean valuation. Do you happen to have numbers on what percent of the time values did not revert to the mean?