6 Tips about Valuation

Here’s how we think about valuation: The S&P 500 companies sell at 15x next year’s earnings, 3x book value, 11x cash flow, 1.5x revenues, have...
The old adage of "you get what you pay for" can be applied to stocks as well. Usually, cheap stocks are cheap for a reason, so make sure that you are...
We won’t short on valuation – say, because Google is trading at 20x next year’s cash flow when we think it should only trade at 15x.
This is not at all to say valuation doesn’t matter, but there have been times I’ve been right about the trend but didn’t buy a leader because it...
First, since investors cannot predict when values will rise or fall, valuation should always be performed conservatively, giving considerable weight...
If we assume that it is the habit of the market to overvalue common stocks which have been showing excellent growth or are glamorous for some other...