On Rule #1 - choosing how far back to look at things is tough. I tend to go with the "focus on the things that wont' change" approach myself. Jeff Bezos took this approach, and Morgan Housel's latest book "Same As Ever" is on the same theme. People will like the taste of a cold Coke no matter the economic conditions, trends, or social no…
On Rule #1 - choosing how far back to look at things is tough. I tend to go with the "focus on the things that wont' change" approach myself. Jeff Bezos took this approach, and Morgan Housel's latest book "Same As Ever" is on the same theme. People will like the taste of a cold Coke no matter the economic conditions, trends, or social norms. That's probably why you can examine it so far back!
Taken to extremes, most things can be risky 😀 too much diversification dilutes your results, too much concentration can be a disaster (if you get it wrong). The PE thing to extremes is interesting, selling too early and holding to too high of a PE both likely sacrifice future gains. Selling too early makes you miss out on the ride up. Holding too long means you have to wait for the earnings to grow into the valuation.
These are the kinds of things that make investing interesting though!
On Rule #1 - choosing how far back to look at things is tough. I tend to go with the "focus on the things that wont' change" approach myself. Jeff Bezos took this approach, and Morgan Housel's latest book "Same As Ever" is on the same theme. People will like the taste of a cold Coke no matter the economic conditions, trends, or social norms. That's probably why you can examine it so far back!
Taken to extremes, most things can be risky 😀 too much diversification dilutes your results, too much concentration can be a disaster (if you get it wrong). The PE thing to extremes is interesting, selling too early and holding to too high of a PE both likely sacrifice future gains. Selling too early makes you miss out on the ride up. Holding too long means you have to wait for the earnings to grow into the valuation.
These are the kinds of things that make investing interesting though!