2011-06-30 Visa and MasterCard Deserved a Higher Price (www.fastgraphs.com)

The most important point which we are trying to articulate is that it is not possible that the True Worth™ value of multibillion-dollar enterprises could change by as much as 15% in one single trading day. Either the market was wrong the day before this happened, or it is wrong now that it has happened, or as we believe, the market is wrong on both days. Volatility at extreme levels can only be thought of as irrational behavior. Accepting the idea that the stock market can misprice a common stock at any time is an attribute that prudent value investors possess. Therefore, they are empowered to exploit the folly when it manifests.

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• earnings
• earnings growth
• stock
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• market
• commercial
• business
• finance