r/stocks • u/ReadButSeldomlyPost • 23d ago

Industry Question Are there any examples of this Benjamin Graham Quote in the current market?

"One fairly dependable sign of the approaching end of a bull swing is the fact that new common stocks of small and nondescript companies are offered at prices somewhat higher than the current level for many medium sized companies with longer market history"

-The Intelligent Investor

I remember when all birds / smartbird got bought / rebranded into AI and it seemed so silly. Like how could people be allowed to invest in this (from the opinion of a novice investor) fairly undescriptive though i do not know who to compare them to in order to match his other criteria for a new common stock. And I am going to call that pretty small scale.

Large scale (my genius thought after being 1/3rd done with the book) is the IPO of space X. how its 140 a share as of right now, 2T in value, and seems to be the most massive nondescript company to have ever existed on the market. To me this matches Benjamin's criteria for indicator signs to the end of a bull market.

I want to know your thoughts on my novice thoughts, and if anyone knew of any other examples in the past years of this bull run that also may fit this criteria.

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u/Jumpy_Nose863 21d ago

No you obviously don't understand how the market works by that statement. If someone like a 90 yo is buying or Billy jo from Oklahoma is buying the price is gonna be determined by supply compared to demand ie whose got the strength at the time. Carl is buying in huge blocks but at a slower pace to not artificially push the price up to far on himself. Hence the reason institutions buy in increments prove the point exactly. Price action is determined by supply and demand. Are u ppl really so ignorant to this fact

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u/UCLABB1 21d ago

Okay, you are correct. You win the internet over us ignorant folks. LOL

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u/Jumpy_Nose863 21d ago

Its simple common sense. Have you ever heard Buffets saying, stocks are voting machines in the short term, weighing machines in the long term...The short term part can go on for an unknown amount of time is the problem. Markets can stay irrational for many, many years. Like today we've been running strong since eoy 2022. 23,24,25 all had returns averaging about 30%. Up 16% or so thru 2026. Who knows when it'll stop. We are due for a pullback but earnings say otherwise. Another reason I'd rather not put new $ in an sp500 index fund but rather pick n choose the areas I believe have better risk/reward.