Business Quote by Robert F. Engle
“If a lot of people feel like this company is undervalued and go out and buy the stock, the stock price will go up reflecting the higher value of this company. You might have information because you trade with them or because you've done some research on them.”
About This Quote
Source Speech: Financial Markets Commentary, 2020
Collective belief about a company's worth can drive its stock price upward, especially when informed investors act on that belief.
In simple terms: Investors' shared optimism raises stock value.
Key Takeaway
Leverage informed consensus to guide investment decisions.
Themes
finance
investing
market dynamics
collective belief
Mood
cautious
analytical
Type
advisory
strategic
When to use this quote
- stock trading
- portfolio management
- research analysis
- networking
- investment strategy
Key Concepts
information asymmetry
price discovery
behavioral finance
Questions to Reflect On
- How do you verify the information you rely on?
- What signals indicate genuine undervaluation?
A Different Perspective
If investors lack reliable information, the price may reflect hype rather than true value.
![“[S]ometimes, when you are a food person, the possible irrelevance of what you are doing doesn’t cross your mind until it’s too late. (Once, for example, when I was just starting out in the food business, I was hired by the caper people to develop a lot of recipes using capers, and it was weeks of…” quote by Nora Ephron](https://sms4smile.com/quotes/img-quotes/d79/nora-ephron-1217_business_s-ometimes-when-you-are-a-food-person-th_980.jpg)
![“If the State does not acquire supremacy over [vast private] enterprises, it becomes their puppet, and they become the real State.” quote by Bertrand Russell](https://sms4smile.com/quotes/img-quotes/bad/bertrand-russell-69_acquire_if-the-state-does-not-acquire-supremacy_1379.jpg)