Customer Quote by Steven E. Landsburg
““A low current stock price forecasts a low future price. If today’s price is low, there is a good reason to buy more (it’s cheap) and also a good reason to buy less (it’s likely to stay cheap). The two reasons cancel out and make “buying more when the price is low” no more attractive than “buying more when the price is high.””
About This Quote
Source Book: The Economics of Good and Evil, Steven E. Landsburg, 1995
Low prices imply low future value, so buying more when cheap isn’t inherently better than buying when high.
In simple terms: Cheap price doesn’t guarantee profit.
Key Takeaway
Don’t assume low price equals good buy.
Themes
investment
valuation
risk
behavioral finance
Mood
cautious
analytical
Type
financial
advisory
When to use this quote
- stock buying
- portfolio rebalancing
- risk management
Key Concepts
price signals
market efficiency
cognitive bias
Questions to Reflect On
- How do you assess whether a low price reflects true value?
- What other indicators complement price?
A Different Perspective
Market dynamics can change, making low price strategies risky.
