I am not saying that Vitrox is good investment. But valuation is far beyond just P/E or numbers on a screen. ===================================================================================
Valuations matter? Really?
People have lost half their money buying steel counters at PE 8 last year, now trading at PE 3....and people have made 100% gains buying Vitrox at high PE, now PE 30 after making 100% gain.
Valuation of course doesn't matter, silly. Depends on what you're set out to do
To a gambler, valuation doesn't matter because they're in for the entertaiment To a speculator, valuation doesn't matter as long someone is willing to offer a higher price To a trader, valuation doesn't matter because they're making the difference in bid/ask price To an investor, valuation does matter because he is owning the business.
Valuation doesn't matter, coming from someone that touts business sense is ironic.
PE is a tool to gauge the value of an asset. If the tool is misused due to the user's lack of understanding, you don't say 'valuation don't matter', you say 'the person has a false perception on how the tool works'.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Jon Choivo
3,668 posts
Posted by Jon Choivo > 2018-07-20 11:17 | Report Abuse
I am not saying that Vitrox is good investment. But valuation is far beyond just P/E or numbers on a screen.
===================================================================================
Valuations matter? Really?
People have lost half their money buying steel counters at PE 8 last year, now trading at PE 3....and people have made 100% gains buying Vitrox at high PE, now PE 30 after making 100% gain.