MRF's High Stock Price Signals High Quality to Potential Investors

Professor Bakshi believes that MRF's high stock price over the long term also work like a peacock's tail and signal high quality to potential investors. Warren Buffett wrote about this in 1983 when Berkshire Hathaway was trading at $1,300. The end result of this could be that only high quality and discerning investors might choose to put their money into such high price stocks. And maybe that's just the kind of investors that MRF wants too.