These are important negative factors but, if a group of investments are carefully chosen at a bargain price, it can minimize the impact of a single bad experience in, say, the management area, which cannot be corrected. And occasionally there is an offsetting advantage which can be of very substantial value—but for which nothing should be paid at the time of purchase. That relates to the periodic tendency of stock markets to experience excesses which cause businesses—when changing hands in small pieces through stock transactions—to sell at prices significantly above privately-determined
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