Move Over P/E, Make Way for the PEG

Einstein

Well-Known Member
#23
im not even 1% of him. he have 50 years of experience of investing im just a new born baby. and please check Jamit thread on stock for long term and short term, there I have posted my real portfolio based on fundamental analysis.

- no one say he is a non-value investor. After all, you only find out who is swimming naked when the tide goes out.
 
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Mr.G

Well-Known Member
#25
Dont bring that up! People here think that technical analysis is the only way to make money. All these are just traders who dont know jack **** about finance.

For them we are funda-mental jokers as a member here once called me.
 

Mr.G

Well-Known Member
#26
Dont bring that up! People here think that technical analysis is the only way to make money. All these are just traders who dont know jack **** about finance.

For them we are funda-mental jokers as a member here once called me.
 
#27
Dont bring that up! People here think that technical analysis is the only way to make money. All these are just traders who dont know jack **** about finance.

For them we are funda-mental jokers as a member here once called me.

To get respect you need to give them respect, if you have superior returns than those people they will listen to you else they are right. However, the way you write about some of the fundamental points because you you dont follow them does not show much respect either.

You need to show your year over year return, net of fee and taxes, if you are beating the benchmark consistently, which is statistically significant, I am sure people will follow you.

I am sure you must have heard about basic fundamental point that size of the pie is constant and if someone is gaining then someone else is losing, all you need to make sure is you are not that someone else.
 

aryan.

Active Member
#29
http://www.investorsfriend.com/Price_To_Value_Ratio.htm

Get your facts straight. Even he doesn't use it for valuation.

Even if he did. PE is a fundamentally flawed approach. Thats my thinking. :) I dont use it and never plan on using it. Please instead of dissing me, open your mind and learn what I am trying to teach you.

Did you even read the link which you posted. Read it again and see what Buffett has written "they provide clues to the amount and timing of cash flows into and from the business"


No one is saying that you just have look at PE ratio. I am saying that its one of the factor you should consider which is what Buffett is also saying.

Instead of teaching others you should first read the links which you yourself post.

BTW Peter Lynch also uses PE and PEG ratios. Read his book "One up on wall street"

Peter Lynch, wrote in his 1989 book One Up on Wall Street that "The P/E ratio of any company that's fairly priced will equal its growth rate", i.e., a fairly valued company will have its PEG equal to 1.

Are you saying that you are smarter than Buffett and Lynch?
 

Einstein

Well-Known Member
#30
Hi Aryan.

I think you would agree with me on this. most of the time on tv shows when analyst give their advises most of them says multiple wise it looks cheap, multiple wise it look expensive.. this is why I posted of this P/E you can't just look at the multiples. you CANNOT tell if the company is cheap or expensive just from P/Ex.

If the was true. CAs would be the most richest person on this planet. i did same experiment with BV/share and EV/EBITDA result is same.these multiples don't tell cheap or expensive, just how much public has invested in the company 'Physciology'

add: analyst should use ratios and valuations just to know if the company is good or bad. growing or not growing.
 
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