Originally Posted by mispoken

I’ll go check my spreadsheet when I get to my computer. It may have been based on forward projections.



I’ll break this down for you;



Time-the greatest asset in investing. Time smooths all things out. The longer the time frame the greater chance of profiting. The longer the time the less relevant a number divided by another number. The longer the time frame the larger the compounding effect. For those with an ultra long investing mindset, ratios are irrelevant. For those who see things as black and white, and must try to prove you’re smarter than the market and do some basic arithmetic, you’re going to miss out on a lot.



Technology-The closest EV is about a decade behind. The technology is one of the main advantages that Tesla has. It’s why their sales continue to grow exponentially. It’s why they’re sold out for the next 2 quarters. It’s why they’re one of the safest cars on the road. The technology in the cars continues to get better by magnitudes compared to the competition.



Founder-Investing in a founder led company with a huge amount of skin in the game is an important part of an investing thesis. I’d take that any day over an arithmetic problem.



Then there’s you. You divided historical numbers by another historical number and decide if the result meets your criteria based on some conventional wisdom derived in academia.



It’s two different ways of investing although, I think your way is not long term oriented at all and therefore not investing. My way is why I’ve produced 30% annualized for a decade. I ignore all arithmetic when investing. It’s irrelevant.



im actually pretty tired of the back and fourth on this. We just have two different ways of doing this. My methods have proven to me, my way works. Maybe yours does too, we are just waiting on the data. I’d like to continue the investing discussion going forward. If people choose the use the ratios to guide them, good on em. If not, I’m happy to discuss my methods going forward.