The price-earnings (P/E) multiple has been one of the most popular tool analysts use to value stocks. A company trading at 10x P/E implies that investors are willing to pay 10 times the net income that was generated. In other words for every $1 in net income generated, investors are willing to pay $10 or a 10% earnings yield. Despite its popularity, it remains one ...
Increased engagement due to shelter-in-place measures but some of this increased engagement will be lost once measures are relaxed in the future. Engagement increased by ~10% YOY across all measurements, compared to ~7% in the previous period. Demonstrating that Facebook's attractiveness as a platform for users to connect with their friends and family.
It is important to understand that the intrinsic value of a business is the present value of all the cash generated over its lifetime. And most would agree that COVID-19 would be a temporary event. It would be silly to sell your stocks or to hold on to your investable cash because this year's earnings would show a drastic decline due to COVID-19 induced shutdown.
The moat surrounded Ferrari has proven to benefit investors immensely. Since its spin-off in 2016, it has delivered a CAGR of 37.3%, delivering a 400% return prior to Covid-19 within a short span of 4 years. Comparing this result with Ford, GM, or even the S&P 500, Ferrari has generated astounding returns for its investors.
“Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”- Sir John Templeton In the two months after Feb 2020, the S&P 500 has been trading like a penny stock, making extremely volatile movements of more than 5% on ...
I started my investing journey around 14 years ago, after reading Rich Dad, Poor Dad. The idea of acquiring income-producing assets resonated with me and I have since been consuming numerous books and resources on the web regarding investing. Today, I focus mainly on growing companies with a wide moat and great management in place. Looking back on my investing journey, I first started out ...
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