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Strategies & Market Trends : Value Investing

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To: Sergio H who wrote (44627)9/28/2011 4:37:53 PM
From: J Mako  Read Replies (1) of 78719
 
<Again from a value perspective, do you ignore the substainability and buy based on past performance or consider the future in finding value?>

I think that's why Graham advocates using 10 years averaged earning as proxy for "earning in normal business environment". Another thing is, this will only work if the company operates in stable industry with stable profit.

Shilling's PE10 is a much better indicator than TTM PE for the same reason.
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