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Stock prices do not reflect current profits. Imagine if they did. If tsla was currently 50/share to be inline with your metric. How would you stop people from b
by bob33212 6y ago
Stock prices do not reflect current profits. Imagine if they did. If tsla was currently 50/share to be inline with your metric. How would you stop people from buying it at 60? Because using your math they will be worth 75+ next year when the other factories come online.
- rchaud 6y agoIt's supposed to at least correlate with future free cash flow, which it doesn't do either. Sometimes I wonder if quantitative easing and corp tax cuts have distorted the stock market past the point where Benjamin Graham-style theories of value investing have become invalidated.
- bob33212 6y agoSounds like AMZN in 1999