Originally Posted by
mispoken
these types of metrics are what keep people from market and building wealth. People always find silly metrics to not get in and time when to get out. I would be much MUCH further behind in my retirement savings right now if I’d followed these mainstream institutional type things. TSLA, SHOP, MELI, AMZN to name a few I would have missed out on 10-20x returns on.
Find excellence, buy excellence, buy more excellence, sit on hands. Most importantly, do whatever makes you sleep easy at night.
Agree with you 1,000%.
P/E is a ratio. That is all it is. In some industries stock trade at different multiples. P/E ratio is one part of an assessment. P/E ratio is an indication of health and the future. Has nothing to do with when to buy.
Look at TSLA. TSLA trades at a P/E ratio of 98. Which indicates that investors think the best is yet to come. The company will perform better in the future.
Compare TSLA to the entire domestic automotive industry which has a P/E ratio (or multiple) of 28 or so. Indicating that TSLA is perceived to be best in breed.
Comparing DAL and BA P/E ratio—you get vastly different numbers.