MSB Trading - 2019, page-538

I don't normally reply to silly observations, but to clarify what I said:

1. Volatility is bad for long term valuations as it increases the discount rate used in Net Present Value calculations

2. I don't mind a strong rise in the price as long as it is sustainable and can continue to build from there

Short term surges and falls only benefit the traders and shorters and I'd prefer the stock to be held by long term investors.

People tend to become more nervous and sell after an unsustainable short term rise, increasing the volatility for a period after that and fraying the nerves of the long term investors which can cause them to exit a position that they may otherwise have held long term.

Finally, Note that a big price rise isn't necessarily volatility if it is repeatable. I would love it if MSB went up $1 per week for the next 2 years - the average weekly return would be $1 and the standard deviation (a measure of volatility) would be zero.

From my long term investor point of view:
Sustainable and continuing price rises are good. They will deliver the best and most efficient valuation and price outcome that eventually recognises the massive potential of this company.

Unsustainable and volatile trading is bad.