A broken Company vs A Broken Stock

Right now there are probably 100’s of good companies being offered at low prices with stocks of some good companies down anywhere for 10-50%.

Unfortunately not all of them will recover. Not because the company is broken but because the stock is broken. Most often due to continued herd mentality mixed with constant attacks by “Those in the Know” that continue to belittle the company and the confidence of those buyers that would lead to price appreciation. There are many examples of companies with revolutionary products, stellar results and yet stock prices fail to mirror that as it is always assumed that the last quarter is the last decent quarter. Apple comes to mind as an example.

Is the broken stock entity real or will all stocks eventually find their appropriate levels and if the broken stock is an entity how does one recognize and therefor avoid it.


Ignore all the nonsense about broken stocks and focus on the business.


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A broken stock is sometimes an early indication of a broken company. How to tell one from the other is unclear. That’s what makes this game so much fun…