Warren Buffett with Fisher College of Business Student
Equity Valuations Are Stretched, But Does It Matter?
I find valuation metrics to be notoriously dreadful ways to make specific investment decisions. For instance, the PE ratio is essentially an inefficient price divided by the future guesstimates of an inherently flawed analyst community (or in the case of trailing PE we’re using a rear view mirror approach – equally distasteful for future investment decisons).
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