In a relatively expensive market, investors are wondering how to navigate their portfolios and find a foothold. From the World Economic Forum in Davos, Switzerland, Yahoo Finance Executive Editor Brian Sozzi sits down with Bridgewater Associates Founder Ray Dalio to garner some great insights for investors on the economy and markets.
"One of the important things for any investor is distinguishing a good company or a great company from a price, the great price," Dalio explains. "You can buy a bad company at a great price and you'll make money. And you can't buy a great company at a bad price and make money. So the price matters."
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This post was written by Rachael Lewis-Krisky, producer for Opening Bid.
I think the market looks quite like it did in 1998. Okay. So let we'll talk about the stock market. The stock market is many different types of companies, and now it's very much, um, a function of the pricing of, particularly, certain types of tech stocks. You know the the segmentation, the segmentation of the market. Those companies have now gotten a lot more expensive. Uh, and like 1998, they're wonderful companies. They're going to have a fantastic futures in in various ways. We don't know who the winners will be. But, um, their prices are uh, have gotten expensive. The important things to distinguish for any investor is distinguishing a good company or a great company from a price, a great price. You can buy a bad company at a great price, and you'll make money, and you can't buy a great company at a bad price and make money. So the price matters. So now you have a situation, here we are, very similar, that the prices of that those that have been leading this market are relatively expensive, and you could have an interest rate increase.
