Valuation is often not a helpful tool in determining when to sell hypergrowth stocks”, Henry Blodget, Merrill Lynch Equity Research Analyst in January 2000, in a report on Internet Capital Group, which was trading at $174 then. n There have always been investors in financial markets who have argued that market prices are determined by the perceptions (and misperceptions) of buyers and sellers, and not by anything as prosaic as cashflows or earnings. n Perceptions matter, but they cannot be all the matter. n Asset prices cannot be justified by merely using the “bigger fool” theory. Postscript: Internet Capital Group was trading at $ 3 in January 2001.