In the 1990s, Several Stocks Had Very, Very High Price

question 161

Essay

In the 1990s, several stocks had very, very high price to earnings ratios. These stocks appeared overvalued to many observers. What might the people who bought them have been thinking?

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Definitions:

Risk-Averse Cultures

Societies or organizational environments that prefer to minimize risks, leading to more cautious decision-making and often avoiding actions that could lead to uncertain outcomes.

Wait-And-See

A strategy where one delays making a decision or taking action to gather more information or see how a situation unfolds.

Individualistic Cultures

Societies that prioritize the needs and desires of the individual over those of the group.

Collective

Pertaining to or shared by two or more individuals or entities, often emphasizing group actions and outcomes over individual ones.