Re: Interactive thread on investment-related questions
You are absolutely correct. Warner Lambert and then Pharmacia (Pakistani CEO HASSAN). During the Pfizer highflying days they lauded the acquisitions. At the time, Merck was focussing on organic growth. Analysts ridiculed it for not doing big acquisitions like Pfizer. Merck was right though. The Vioxx case noteithstanding Merck trading at about 10% higher level than where it was 10-12 yrs ago. While Pfizer! Is still 50% off.
While acquisitions responsible for some of pfizer drop, the other reason - significant overvaluation 12 yrs ago and significant undervaluation 3 yrs ago.
In current mkt cant find much value. But it will be there. People get fearful and sell. They get enthusiastic and buy.
Mutual fund managers add to this with quarterly window dressing.
Snp 500 Index funds push large cap stocks higher. List goes on. As small investor one can wait and wait tillnopportunity ripe.
Man I love this topic.