Passive investing has exploded over the past decade — but is it distorting stock prices and squeezing out returns? In this video, we explore the massive inflows into index funds, their effect on market valuations, rising concentration in mega-cap stocks,…
How does AI value AI? We prompted Perplexity Labs to create a DCF for #NVDA, #MSFT, #GOOG, #META, #AAPL and #AMZN. The results may surprise you.
The P/E for automobile manufacturers is normally very low. Ford, GM and Toyota currently trade at 7 times earnings. Tesla’s P/E of 114 is unique in the auto industry. Elon Musk’s promises of future growth from humanoid robots and robotaxis…
Today, we're going to talk about one of the most basic concepts of investing—risk. There's overwhelming evidence that when it comes to a large part of their net worth, like their retirement savings, investors are risk-averse. What that means is they…
The ultimate source of wealth from financial investments comes from the transfer of funds to entities that invest in the production of real goods and services.
As Herb Stein “if something cannot go on forever, it will stop”. The current growth of government debt is unsustainable. How will it stop? And what does that mean for investors? Hello, and welcome back to *Reflections on Investing with…
A majority of stocks destroy wealth. In fact, most all of the wealth creation from stocks is attributable to only a handful companies. Today, we’re going to talk about something that is particularly important to investors: corporate value creation. Ultimately,…
For more than four decades both Prof. Aswath Damodaran and Prof. Bradford Cornell have stressed the importance of the equity risk premium (ERP) for evaluating the stock market. This video dives into the calculations to explain why understanding the role…
The combination of P/E multiples and earnings determines stock prices – its basic math. In our last episode of Reflections on Investing we looked at earnings, now we add in the role of the multiple. Hello! Welcome back to Reflections on…
