How I Made 2 Million Dollars In The Stock Market...

> ...what I meant by things changing is -
> hasn't technology literally changed the
> dynamic of the way the market responds and
> how quickly?

> Hey, I don't know anything about this stuff
> - so I'll defer to your opinions on this ...

> Anon

Has technology changed how the market works? Well, my opinion would be yes and no.

The main change, as far as I can tell, is that there is now an abundance of information sources, and information travels further. If you're sitting in Sydney it's much easier to look at companies around the globe than it was 10 or 20 years ago because news is typically available online straight away and reports can be downloaded.

With such advances I imagine the time between when an unexpected event happens and it is reflected in the stock price is now near instantaneous, or at the very least would be faster than in 1940.

There are many books that look at investment theory or investment methods that are longer-term in nature though, in which technological advances probably do not have a big impact.

The books mentioned by Graham, for example, deal with "value investing" and the concept of intrinsic value.

To put it simply, it's the concept that stocks have some innate value that differs from the stock price. "Price is what you pay, value is what you get," in other words.

A lot of writing of his then may go into how he believes you should determine the intrinsic value of a stock. That information, if you believe in it, is timeless and technological changes don't devalue the message.

- Thomas.