Posted by kcchongnz > 2018-03-14 20:15 | Report Abuse

One of the perils of buying ETF.

Posted by Jon Choivo > 2018-03-14 20:27 | Report Abuse

Yeah sifu,

I like what howard marks said, when you buy an index, you need to ask yourself what is the percentage of rubbish do you like to buy? Haha.

kcchongnz One of the perils of buying ETF.
14/03/2018 20:15

Posted by KLCI King > 2018-03-14 20:35 | Report Abuse

Thank you, Jon, this is one of the best articles lately, informative & no biased.

Posted by sosfinance > 2018-04-01 14:47 | Report Abuse

Normally when people ask me what PE are you going to pay, I will ask, what PEG are you getting for the next 3-5 years. (without talking about other variables yet).

When people asked me, is ROE 100% consider good, I will ask, what P/BV are you talking about? 1x or 57x.

In short, when we look at any financial metrics, please, look at it from a few angles. (many are incomplete on its own). Gearing, PE/PEG, EV/EBITDA, ROE based on what P/BV, FCF/sh, DY, etc. These are just tools for referencing for comparative purpose only.

5 minutes research

If a friend asked me, is Nestle trading at PE 56x and ROE of 100% and P/BV of 57x. Given 5 minutes only my answer is, EXPENSIVE, why, CAGR last 10 years is 7.35%. Estimating PE of 8% is natural. ROE is 100% x P/BV 57x, so it looks high. And I take a quick look at McDonald, doing at PE of 24x, so my 5 minutes answer to my friend it, HIGH. (5 minutes research can be dangerous)