July 18, 2008

Currency trading – But at the same time, the price of any one stock is also affected by what speculators and investors know or guess about that company in comparison with others.

The Monthly Stock Digest, a pamphlet distributed through brokers to their clients, contains statistics on common stocks listed on exchanges. In the February, 1957, issue it shows how much the price of each stock has changed since August, 1953. We made a study of the first 100 stocks appearing in the Digest's alphabetically arranged list. We skipped two companies with incomplete records, also four investment companies, because their prices reflect the average of all the diversified stocks they own. We believe the 100 stocks in our study are fairly representative of the performance of all listed stocks. Assuming that in August, 1953, we had made a $1,000 investment in each of these 100 stocks, in January, 1957, we found that on the worst-performing stock the value had gone down to $450, while on the best it had risen to $5,040, and on the other 98 stocks the value ranged all the way between these extremes.

Currency trading – But at the same time, the price of any one stock is also affected by what speculators and investors know or guess about that company in comparison with others.

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