limtex, in my world, valuation matters. overvalued companies that i wouldn't touch become undervalued companies that i buy, buy, buy.
it all depends on price. of course, that is a rational approach so i don't suspect many folks will understand it. just kidding, in a way.
the market has rewarded irrationality so long and punished rationality (buffet and soros, etc) so badly that the incentive for rational folks to act irrational is HUGE.
and it works for a while. that is why it is so seductive. it works. getting rich is simple. it is EASY. it works.
until it doesn't.
a forward pe of 40-45, or so, for qcom is expensive in my book, but i realize that i am a cheapskate ;-) reasonable people, imho, could justify it. there don't need to be three wireless data devices sold annually per every person on the planet to justify this price ;-)
i am amazed that folks would give mu a higher valuation, relative to earnings, than they give to qcom. unreal. qcom is, and has been, a MUCH better company than mu by all standards.
just another wild story from the mania market of both centuries.
what did you think about that inflation article i posted to diamond h? |
