Shiv Kapoor

Advice for Investing in Turbulent Times

ThoenTBrite - Thanks for the kind words. The ugly slob image is carefully cultivated; been seen as the (under) dog it gives a massive advantage in negotiation! Besides my brother took all the family looks even though he came after me.

But seriously, since there are economic students at stake, I will point one fact out which is not raised by any readers. In addition to use of operating earnings as a divsor to calculate multiples, I use earnings + dividends as a divisor in calculating alternative mutiples; no one asked why. Since earnings are before dividends, it is somewhat illogical to use a sum of the two as a divisor. It works best because at market bottoms yield and valuation together become the key investor criteria; so an absolute value gives the information most relevant for investment decisions being made.