nickenumbers Posted April 13, 2018 Share Posted April 13, 2018 All, I would like to get the groups opinion on PE, PEG, growth rates, etc as tools to understand stock pricing and future price appreciation. I am a hugh Monish Pabrai fan and I love his work. I have heard him talk about his work day, and I believe that he has said that he reviews investment company ideas that come to him daily, but he will not look at anything that is not under a 4 PE, or a 2 PE, etc. I think he talks about the PE as a filter, or a low bar.. I am confident that he is far more complicated than this simple filter, for sure. But, I am growing my realization on the best way to filter for investment prospects. I think it must involve, Price, Price to Book, PE, PEG, and it must have some larger understanding of the growth rates. As well as all the business intangibles and moat evaluation. This is shockingly obvious, I get it.. But why does Mohnish hand out PE as the primary filter? I guess I am recognizing how little value there is in a stock market Screen as a way to select companies to evaluate. Filter on PE, is wrong. Filter on PEG, is wrong. Filter on LTM EPS growth rate, is wrong Etc. Thoughts? Thanks all. Link to comment Share on other sites More sharing options...
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