Comments for Impact: Efficiency http://www.impactefficiency.com Interesting Analysis and Data Visualization Thu, 09 Dec 2010 13:53:40 +0000 hourly 1 http://wordpress.org/?v=3.0.1 Comment on Why are capital gains taxed differently from gambling winnings? by Paul Szydlowski http://www.impactefficiency.com/analysis/why-are-capital-gains-taxed-differently-from-gambling-winnings/comment-page-1/#comment-1312 Paul Szydlowski Thu, 09 Dec 2010 13:53:40 +0000 http://www.impactefficiency.com/?p=71#comment-1312 I tend to disagree with your argument that the value of a company's stock is not driven by the company's performance. Yes, share prices fluctuate based upon short-term speculation, but in the end, it is the company's performance that determines the ultimate value. GM's share price performance in 2008 was a direct result of company performance. Apple stock rose from the dead with the rehiring of Steve Jobs and the subsequent success of the iMac, iPod, etc. When one buys shares in a company, one buys a claim on that company's earnings. Day-to-day changes in expectations of future performance, along with macro-economic factors drive day-to-day price changes, but if those changes deviate beyond what is reasonable, wise money will pour in if the price is too low (someone may even buy the company outright) or flee if the price is to high. The savvy investor uses temporary market insanity to their advantage, moving when price and underlying value are out of whack. I tend to disagree with your argument that the value of a company’s stock is not driven by the company’s performance. Yes, share prices fluctuate based upon short-term speculation, but in the end, it is the company’s performance that determines the ultimate value. GM’s share price performance in 2008 was a direct result of company performance. Apple stock rose from the dead with the rehiring of Steve Jobs and the subsequent success of the iMac, iPod, etc. When one buys shares in a company, one buys a claim on that company’s earnings.

Day-to-day changes in expectations of future performance, along with macro-economic factors drive day-to-day price changes, but if those changes deviate beyond what is reasonable, wise money will pour in if the price is too low (someone may even buy the company outright) or flee if the price is to high. The savvy investor uses temporary market insanity to their advantage, moving when price and underlying value are out of whack.

]]> Comment on Effective Tax Rate Across Income Cohorts 2007 Update by pligg.com http://www.impactefficiency.com/analysis/effective-tax-rate-across-income-cohorts-2007-update/comment-page-1/#comment-201 pligg.com Thu, 08 Apr 2010 23:39:04 +0000 http://impactefficiency.com/?p=46#comment-201 <strong>Analysis of tax rats showing the benefits of capital gains...</strong> Learn the secrets of the rich and how they reduce their tax burden through capital gains.... Analysis of tax rats showing the benefits of capital gains…

Learn the secrets of the rich and how they reduce their tax burden through capital gains….

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