You can add location information to your Tweets, such as your city or precise location, from the web and via third-party applications. You always have the option to delete your Tweet location history. Learn more
or more accurately that the cheap stock will beat its implied growth by more than the expensive stock. When you look at it this way it's clear that "value investing" is far from guaranteed to outperform. It's not even obvious there should be any premium at all.
Part of the reason that value has sucked over the last ~15 years is that value spreads widened, but equally if not more important is that the expensive stocks grew into, and even outperformed, their implied growth rates -- i.e. the central bet failed.
(Also the fact that most value metrics use consensus forecast data 
)
Could make the argument that AMZN would've been a value stock if sell-side had projected future metrics better 
BuT i'M bUyInG cHeAp CaShFlOwS
Topic I'd like to learn more about. Insofar as multiples are a perception of growth rate the distinction between growth and value feels like it should have less to do with multiple and more to do with uncertainty of growth rates. Valuing a metaverse co vs a car wash...
is a different exercise. But what is it about the exercise that delimits value vs growth analysis. How do the approaches differ? I want to understand that, rather than seeing some programmatic categorization based on multiples
a dirty little secret concealed by a lot of value rhetoric is that often market-implied and sell-side growth rates will be lower than recent actual growth rates. ultra-naive extrapolation into infinity is the exception
Well also the preceding 5 years for that 15 year stretch saw an incredible return on equity explosion for companies on the bottom RoE quartile
could be 1) lower rates made their cashflows today less appealing 2) cashflows sensitive to margins and they get in price wars with the disruptoooors who were getting cheap funding due to venture supercycle which was triggered by low rates 3) all the alpha got sucked up by PE
My low IQ question: Does the “true value” of a stock matter at all? E.g recently doge, shiba — w/o dividends is tsla really any different from those? People are buying at any price not for absolute value but because EV & rockets are simple, cool, popular, hyped etc.
Howard marks has a Great essay on value investing. One of his letters
Question is. What information does Price multiple convey? Low multiple will stay low too without a catalyst. Value also was never strictly defined in multiples. It’s only 60s onwards the trend changed I guess.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.
