Investing is not a game against nature, but against other investors. Both buyers and sellers are acting on the same information but doing opposite things. Who is right? The recent earnings and dividends reported is history and the seller already enjoyed the benefits. As a buyer you are buying an unknown future. Investing is a game of probabilities and possibilities but not certainties. A rational investor should understand this. If not he is a damn fool.-from SeekingWisdom
Categories
One reply on “Who is right?The Buyer or The Seller?”
My 2c: The seller is never *wrong*. Because the seller is merely encashing his profits or getting out of a bad position. Only the Buyer has the potential of being wrong.
If the seller is a long term investor who then purely *sits* on his cash thus earned, he will have the potential to become wrong (the market may go up further). Alternately, if the seller gets into another position, then he becomes the buyer, where he has the potential to go wrong.