Posts filed under “Valuation”

Shiller: On Bubbles & Busts

In an interview with contributor David Wessel, Yale economist Robert Shiller describes his thoughts on what actually drives markets—and recalls his encounter with Alan Greenspan just before the Fed chairman’s “irrational exuberance” speech.

Category: Psychology, Valuation, Video

Are Stocks Cheap or Pricey?

>   My Sunday Washington Post Business Section column is out. This morning, we look at whether stocks are cheap or expensive. The print version had the full headline Are Stocks Cheap or Not? How to Tell. The conclusion is surprisngly middle of the road. Here’s an excerpt from the column: “To know whether stocks…Read More

Category: Apprenticed Investor, Investing, Valuation

When Markets Are Wrong

  My favorite chart on the website this week (so far) comes from Matthew Klein’s column: Is Yahoo’s Business Worth Less Than Nothing? And it’s filled with informative details. Yahoo! Inc.’s total value is represented by the first bar. If you subtract the value of Alibaba Group Holding Ltd. and Yahoo! Japan Corp. you are…Read More

Category: IPOs, Valuation

Buffett’s Favorite Indicator Is Worthless as a Buy/Sell Signal

Source: The Chart Store     Today I am going to make a somewhat nuanced argument about the dangers of indicators and metrics for valuing stocks. Let’s use arguably the greatest investor of all time, Warren Buffett, and what he describes as, “probably the best single measure of where valuations stand at any given moment.”…Read More

Category: Really, really bad calls, Technical Analysis, Valuation

WhatsApp

He’s creatively bankrupt. Recent studies show that few post and no one clicks through on likes, what’s a poor boy to do? Buy something with all that Wall Street money to deflect criticism as those prognosticating and investing miss the point. Steve Jobs is a hero not because he started the computer revolution, but because…Read More

Category: M&A, Technology, Valuation

If Company Market Caps = Countries’ Listed Firms

This map matches the value of an entire countries’ listed firms (in total) versus the cap of a single company. Source: Economist

Category: Digital Media, Valuation

Why ‘Peak-Earnings Models’ Are Nonsense

Lately, there has been a spate of research, analysis and commentary telling us that earnings are at a cyclical high and must revert. Stock valuations, therefore, are elevated and earnings will soon begin to fall, bringing stocks down with them. This is neither a credible analysis nor a method of valuing equities. Rather, it is…Read More

Category: Earnings, Investing, Really, really bad calls, Valuation

Assets versus Prices

Josh has an excellent post up, titled Don’t Hate the Asset, Hate the Price, that makes several important points. I want to reiterate and expand on them here. Some of these are lynchpins of an investing philosophy I have been espousing for many years. Its a broad discussion on price and value, and I think…Read More

Category: Investing, Philosophy, Really, really bad calls, Valuation

BCA U.S. Equity Valuation Index

click for larger graphic Source: BCA Research   There seems to be an increasing concern that stocks have become wildly overvalued, especially in light of rising interest rates. However, somewhat overvalued U.S. equity prices can continue to rise if price/earning multiples keep expanding.   Continues here      

Category: Markets, Technical Analysis, Valuation

Profitibility at the World’s Biggest Tech Firms

  click for ginormous graphic via Pando Daily  

Category: Digital Media, Earnings, Technology, Valuation