Value Portfolio Produces a Horrendous Report Card [View article]
Valuing a company's earnings as a multiple of trough earnings is IMO a mistake. Ownership of a company is ownership of a stream of earnings far into the future. Those earnings, however vague, should be considered when valuing a stock. Recoveries follow recessions and bull markets follow bear markets. Those who ignore this and only consider what a company is earning today are offering others bargains. The lower the price goes the higher the longer term opportunities are. We are IMO in one of those rare times when tremendous long term opportunity exists. The old saying 'fortune favors the bold' applies.
Value Portfolio Produces a Horrendous Report Card [View article]