Kerr Neilson: it’s all about the price

“Here’s a point I can never repeat often enough. This business is not about creativity and great dreaming. It’s all about price. When the price of something has collapsed by two-thirds, as the Chinese stockmarket did until a year ago, that’s not when you get worried. It’s when it’s gone up three-fold you should be worried. When it goes down you should be delighting in the prospect. Let me labour this point. If I offered you the car of your dreams, you’d be hounding me to tell you the price. I used to be in stockbroking, and as prices went up, our clients really lusted after shares as they became more expensive. But that’s not what they’d do with their Mercedes Benz S- Class. Please take away from this one critical message. Price is critical. What does the price say? It’s not about the headlines, it’s what is in the price.” Full article on Cuffelinks: (VIEW LINK)