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Posts by anantksundaram

 While I agree that there is 'no natural PE' and that 'appropriate' PEs can vary by industry, it is far from an ad hoc formula. Indeed, it has a rather precise meaning, couched in two specific fundamentals: the return expected from the stock (which is based on its risk), and the expected long-run growth rate in earnings. Let me explain with some simple algebra. (I will make some simplifying assumptions without any loss of generality). Assume that the Earnings (E) of a...
 You've got to be kidding me. Seriously. It's a wonder there was no fatwah against that other cubist, Ernő.... (Aargh.... what's up with the damn formatting on AI....)
LOL. You think that the market does not know -- but you and I do -- it's being phased out? Or, it knows, and it's not factoring it into prices? Why?
Amazon is, indeed, ridiculously valued. When there are thousands of stocks traded, there are always outliers here as anywhere else (Tesla is another one, IMHO). A few examples like that do not necessarily extrapolate to irrationality in relation to the market as a whole, or to relatively more mature businesses.
At some point, all I can do is shrug my shoulders and say, it's a free country. You're welcome to believe whatever you wish.
I don't wish to repeat myself. Suffice it to say that you are posting as though fundamentals don't matter. This, after -- correctly -- talking about value being nothing more, nothing less than the capitalization of expected future cash flows. That's bizarre.
I had hoped that Apple would go back to putting the headphone jack on the top, and not the bottom of the phone. I find the latter a tad annoying.
Please stop posting (and linking to) nonsense.
This is irrelevant unless you sold shares back to Apple from your holding in proportion to the amount that Apple repurchased.
It only makes sense to compare share price changes (i.e., returns) over time, not changes in market cap. (If we can argue that two shares are risk-equivalent, we can compare a multiple such as the PE ratio; but that can be questionable in many instances). The market cap is, to some extent, irrelevant to the individual shareholder since all that matters is the number of shares (s)he owns multiplied by the share price. The market cap will automatically decrease -- all else...
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