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>"I'm tired of "Stocks are gambling" nonsense like this." Definitely in agreement with you here. >"Its not very difficult." I assume you have a portfolio tha
by tatsuke95 14y ago
>"I'm tired of "Stocks are gambling" nonsense like this."
Definitely in agreement with you here.
>"Its not very difficult."
I assume you have a portfolio that's been killing it. Would you mind posting your results?
>"but if Apple was a company that only and always grew at %20 year over year, then "on the fundamentals" Apple should be trading at 20 times EPS."
The problem is predicting that a company the size of Apple will grow 20% y/y forever. What fundamental reason do we have to believe that? We're sort of in uncharted territory there. For all we know, Apple's decline starts next year. That's the difficulty of this.
>"puts their money into index funds."
There are sophisticated financiers who insist that index funds offer the best value in investing. The world is filled with people who think it's "easy" to get "great" returns in the stock market. The reality is that in an efficient market there are no "great" returns, only average returns. Those returns are based on a function of risk (so the expected returns are the same) and some time value of money.