The Proof of an Intelligent Investor


Source: Google Finance

[Update] As further proof of what's below, FTSE 100 is now trading higher than what it was at pre BREXIT. 

[Original Post] The after math of BREXIT shook up several markets. FTSE 250, which is a composite of very UK centric businesses took a severe hit that morning, and so did FTSE 100. FTSE 100 is composed of firms which draw less than 30% of their revenue from inside the UK. 

So, amid all noise of doom and despair, you'd expect scrips of any kind fall. At least that was the prediction by several from the media and a few from my peers. 

But, here's what sets the case for existence of an intelligent investor. 

Stocks of companies like ARM Holdings in the FTSE 100, which draw a significant revenue from non-UK markets, actually rose. With the sterling being weak, several such companies would be beat market estimates for a couple of quarters until corrections are issued. I had made such a case in my earlier post. 

So, the fact that stocks of companies like these, which perhaps have more tha $15B in Market cap rose, while everything around was crashing, re-affirms my faith in the fact that there are more intelligent investors than at least I had previously imagined. 
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