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The 12 Silliest and Most Dangerous Things People Say About Stock Prices
In Chapter 18, Lynch lists what he calls the 12 silliest and most dangerous things people say about stock prices. A company that is being disrupted and seeing declining sales year after year is a company whose business model is in jeopardy. Great companies are able to control their costs, have a strong balance sheet and be free cash flow positive so they can weather through these tougher economic conditions just fine. But even the great companies can have their stock prices fall a lot further than you might think.