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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: Freedom Fighter who wrote (368)6/5/1998 7:23:00 PM
From: Reginald Middleton  Read Replies (1) of 1722
 
I have always had serious probelms with the accuracy of earnings as a proxy for shareholder value. I compared the correlation of about 4,400 companies' earnings to market value over the last ten years and found it to be very low. Depending on the industry, various cash flow measures track market value MUCH more cloesly. Look here rcmfinancial.com or here rcmfinancial.com for an example.
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