Gotta share this one with all my friends here:
I was picking up lunch at the local corner store. TV was on CNBC (the owner does a little trading), and AOL flashed on the ticker. Another guy, who has a full time job, says "look at that AOL!" I kidded him, said, "you must be one of those day traders!" He replied,
"I'm trying to be..." He gave his opinion that AOL was dirt cheap, I said,"Yea, if you want to pay 100+ times earnings...", which got a befuuddled look from him - like how does a PE relate to growth?! This is the mentality of the market now. It used to be, the PE of a stock should not exceed its growth rate. Still these internuts are overvalued IMHO.
Thank you for letting me vent, fellow value investors! |
