4 DOLLARS on the cards, page-126

The market’s view is always a lot further out. If you learn financial valuation models, every single financial valuation model actually models out to infinity be it FCV or the Black-Scholes models and its variations.

The market’s view stretches to infinity.

The average layman (who can’t even plan out what is happening to his life 6 months ahead) will never have such a long term view.

The fund managers (who are judged and rewarded or ridiculed based on their quarterly and half yearly performance) will never have a long term view.

This is why the market is always overshooting reality, both on the upside and on the downside.

If you understand this, it makes it quite fun to guess the inflection points or turning points. I believe that for Webjet, the inflection point was when everyone dumped the stock, and Webjet’s management raised capital at the point of peak fear, further spooking every segment of investor, from fundies to sophisticated investors to retail investors.

So glad I purchased 170% of the allocation at $1.70 both within Super and also Non-Super holdings and my wife did so too.