To All, More funny stuff on CNBS. A strategist from Mabon Nugent, a firm with which I have had a great relationship over the decades, was on talking flapdoodle today. Here is his valuation model:
"Buy a secular growth stock. Do not sell it as long as the growth continues."
So, using his model, if a stock is growing faster than the market yardstick, there is no level of valuation at which you will sell it. A stock growing at 30%, but selling at 500 times eps, is still a hold as long as it is growing at 30%. He didn't say that, but that is the logical conclusion to his advice.
Really dumb stuff from a respected firm like Mabon.
And everyone should notice that I have reformed some of my wicked ways. I never once mentioned that this strategist looked like he was 16 years old, because I am a contrarian, not an ageist. <G> Stupid is as stupid says, and it is stupid if your senile Nanogenarian grandpa says it or if a guy still using Pampers training pants says it. I am so proud of my lack of bigotry. <G>
MB
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