Lessons from Investment Gurus

The Most Important Thing

 Successful investing requires thoughtful attention to many separate aspects, all at the same time. 
Omit any one and the result is likely to be less than satisfactory.

The idea of the most important things—each is a brick in a solid wall, and none is dispensable. 

Let’s look for some gems in a stock market that has seen significant losses.  For example, stocks whose Earnings per Share have been growing and who still have upside to their target price. This combination generally means that the stock is currently underpriced and has an upside. 

I’m Sam, I’m the curriculum director at Gregorio Perfecto High School in Manila, Philippines. I’ve been an educator and administrator for just over 25 years. Our school is spending a good amount on edtech, but I don’t feel like we’re getting the most out of it. I’d love to learn from everyone what is working for them. Thanks!

Sam Mendoza

Keep in mind when looking at low Price to Forward earnings ratios that these can revert to the mean by 1) price going up (good for bulls) 2) lower earnings guidance (horrible for bulls)

It seems we are seeing more of #2 than #1 right now, but wall street is still adjusting their forecasts for a recession and more aggressive than expected tightening. I think we still have a quarter or two before Price to Forward Earnings ratios are “normalized”

Keep in mind when looking at low Price to Forward earnings ratios that these can revert to the mean by 1) price going up (good for bulls) 2) lower earnings guidance (horrible for bulls)  It seems we are seeing more of #2 than #1 right now, but wall street is still adjusting their forecasts for a recession and more aggressive than expected tightening. I think we still have a quarter or two before Price to Forward Earnings ratios are “normalized”