[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  The Silver Baron [@WVerily](/creator/twitter/WVerily) on x 5168 followers Created: 2025-07-22 03:15:49 UTC ⛏️📊🎯Know what you are and know why you buy, hold and sell. Stock selectors are less concerned with timing the market cycle, than they are with searching for differences between PRICE and VALUE. Traders and investors generally agree that share prices tend to track the value of their underlying companies over time and that share prices can diverge from value over the short to medium term. Contradictory approaches undertaken by traders and investors can confuse people. - Investors attempt to identify mis-pricing and use it as their opportunity to buy or sell - they seek enterprise value. - Traders act as speculators, attempting to identify market sentiment and to capitalise on the very short, to short and medium term movements of share prices or the market generally. Traders use stop loss orders and sell when a stock falls in price by a predetermined amount. Investor's do not use stop loss orders. In fact they are likely to buy in a falling market as long as their view on the investment merit of the stock remains in-tact. Many things are outside of investors’ control. Traders with stop losses and computers with algorithms in these instances might deliver speed of reaction, but neither have INSIGHT into the value of any particular company, and react inappropriately. While market efficiency might explain share price movement a lot of the time it is unlikely to explain stock prices when emotions are strong. Extremes of collective emotion can result in the market mis-pricing stocks. The intrinsic value of an investment might or might not equal its market capitalisation at any point in time. Successful investors are those who act on calculated values that are "less wrong" than the daily market price. The most reliable calculations are made by investors using relevant information that can be reasonably substantiated - referred to generally as the facts. Charles Dow is quoted as saying that "values determine prices in the long run. Values have nothing to do with current fluctuations. A worthless stock can go up five points just as easily as the best, but as a result of continuous fluctuations the good stock will gradually work up to its investment value. An investor who will study values and market conditions, and then exercise enough patience for six men will likely make money in stocks". An investor should use value as a bedrock of investment decisions - independently value a stock and then wait for the market to present a favourable price to either buy or sell. Real opportunities do not present often so patience is important. Patience is the hallmark of true investors. Furthermore, our investments should be limited to the very best deals we come across in a lifetime. One of the only consistencies in the financial markets is how people behave when faced with similar sets of circumstances. Humans react inappropriately when interacting with the financial markets because their instincts were shaped in an environment of physical risk, not financial risk. The fight/flight response causes many to sell at a time of panic, the worst time to do so. They are influenced strongly and unconsciously by groupthink. Investors who can think independently are at an advantage. Seek correctness, not consensus. XXX engagements  [Post Link](https://x.com/WVerily/status/1947495773459124392)
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The Silver Baron @WVerily on x 5168 followers
Created: 2025-07-22 03:15:49 UTC
⛏️📊🎯Know what you are and know why you buy, hold and sell.
Stock selectors are less concerned with timing the market cycle, than they are with searching for differences between PRICE and VALUE.
Traders and investors generally agree that share prices tend to track the value of their underlying companies over time and that share prices can diverge from value over the short to medium term.
Contradictory approaches undertaken by traders and investors can confuse people.
Investors attempt to identify mis-pricing and use it as their opportunity to buy or sell - they seek enterprise value.
Traders act as speculators, attempting to identify market sentiment and to capitalise on the very short, to short and medium term movements of share prices or the market generally.
Traders use stop loss orders and sell when a stock falls in price by a predetermined amount. Investor's do not use stop loss orders. In fact they are likely to buy in a falling market as long as their view on the investment merit of the stock remains in-tact.
Many things are outside of investors’ control. Traders with stop losses and computers with algorithms in these instances might deliver speed of reaction, but neither have INSIGHT into the value of any particular company, and react inappropriately.
While market efficiency might explain share price movement a lot of the time it is unlikely to explain stock prices when emotions are strong. Extremes of collective emotion can result in the market mis-pricing stocks. The intrinsic value of an investment might or might not equal its market capitalisation at any point in time.
Successful investors are those who act on calculated values that are "less wrong" than the daily market price. The most reliable calculations are made by investors using relevant information that can be reasonably substantiated - referred to generally as the facts.
Charles Dow is quoted as saying that "values determine prices in the long run. Values have nothing to do with current fluctuations. A worthless stock can go up five points just as easily as the best, but as a result of continuous fluctuations the good stock will gradually work up to its investment value. An investor who will study values and market conditions, and then exercise enough patience for six men will likely make money in stocks".
An investor should use value as a bedrock of investment decisions - independently value a stock and then wait for the market to present a favourable price to either buy or sell. Real opportunities do not present often so patience is important. Patience is the hallmark of true investors. Furthermore, our investments should be limited to the very best deals we come across in a lifetime.
One of the only consistencies in the financial markets is how people behave when faced with similar sets of circumstances. Humans react inappropriately when interacting with the financial markets because their instincts were shaped in an environment of physical risk, not financial risk. The fight/flight response causes many to sell at a time of panic, the worst time to do so. They are influenced strongly and unconsciously by groupthink.
Investors who can think independently are at an advantage.
Seek correctness, not consensus.
XXX engagements
