Malmqky

Apple and Microsoft and similar firms have such a large weighting in the SP, it makes sense to value the SP differently now than in the 70s.

Buffett says book value is becoming more and more irrelevant for valuing Berkshire. I believe he's said the same for Apple. I try not to quote Buffett and such, but I trust his judgement for valuing these two companies. And if book value is poor for valuing APPL and BRK, it's poor for the other ~8 holdings that make up ~30% of SPY.

You ignore intangibles completely using this method. The things that make Apple so valuable, to use it as an example.

Key to wealth with zero brainpower used for the average person: * buy property when young, 30yr mortgages are great leverage you usually wouldn't be able to get otherwise. buy a bit more than you "afford" at the moment, relying on future earnings growth * have a decent emergency fund in cash, maybe 3-12 months (also used to cover upkeep for property like new roof, etc) * 401k contribution to get employer match, VTI/VOO * max ira, VTI/VOO * rest of leftover monthly funds DCA'd into 120% VTI/VOO in normal brokerage (maybe 401k depending on tax situation) * avoid buying depreciating assets like expensive cars with high interest rates and excessive spending in general If you have at least average intelligence and an interest in investing, you can probably cut down on the emergency fund and do more than DCAing into index funds for even better results.

Why is the market's current PB ration relevant when you have companies like Apple dominating the index? Like look at the top 10 holdings...why is BV a good way to value any of them?

Tracker in ASML

Good, maybe Google will stop spending so much on capex miss the lean days. Anyways, you have to admire Apple's approach to all this. I think most people agreed it was the right way to go about things, but still takes good vision to stick to your guns like they did.

Bought some PDD calls early Friday to scratch that gambling/speculation itch. ________________________________________________________________ Not to take this further off topic, but even if you have huge f*ck-ups, you can still do well. I'll use myself as an example, and my worst investment failure. I started buying FB at $300 something per share. Averaged down for a while, then ended up selling at like net-cash and like 2-3x sales (can't remember which). It was a large position too. I got caught up in the pessimism surrounding spending on the Metaverse and TikTok. Basically, pulled an Ackman. Not going to make excuses for this one LOL. Few years later and I still think about this. But guess what? I've still outperformed the market since I had the guts to buy and hold great companies in the aftermath of times like 2009 and 2020. And buying energy in 2020. My point is you can have big f*ck-ups and still do well. You just have to be optimistic, do some work, not outsmart yourself, and have guts. I've had 50% portfolio drawdowns more than once. I've had terrible investment decisions like Meta. I've held too much cash at times, and not enough at other times. Etc. Etc. Etc. @Blake Hampton even if shit hits the fan and we have another lost decade in terms of overall market, you can still do well (15%+ CAGR). You can make huge mistakes and still do well. If you're pessimistic though, you'll end up like Klarman and do ~4% CAGR. You have to be nimble, Peter Lynch like. What worked in the early 2000s didn't really work in the 2010s and I reckon the 2020s will continue to give us unique opportunities. You have to have some faith. Sidenote: I too am interested in hearing about your portfolio if willing to share.

Yeah aftermath of 2001 and 2009 gave great opportunity, all you had to do was have some guts and faith. 2020 too tbh. End of the day though, absolute returns are all that matters. A decade of extreme underperformance is unacceptable. Idc how you try to justify it.

Little bit of TAYD

Why this over Eli Lilly? Out of curiosity. I've looked into Novo recently, but biotech in general is just too complex for me I think. Especially valuing these companies. Novo is certainly a great company though.

PDD

Do you live in the US by chance? I know multiple people who have had to declare bankruptcy due to medical expenses. An example is my mother (divorced from my father), who had a brain tumor when I was a child.

Unfortunately SimplyWallstreet is kind of a joke. I wouldn’t put any stock in their valuations. Take a look at some shitcos and see what they value them at. It is nice to see a valuation thrown out like that for FFH though

More $PM. Look who finally has learned to average up Hoping FX gives me some nice buying opportunities over the next year...