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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (102847)	2/19/1999 12:44:00 AM
From: musea	Read Replies (1) \| Respond to of 176387

Scott, You wrote: Finally, a simple focus on the P/E blinds investors to the most important number to consider in evaluating a company, namely its return on invested capital (ROIC). ... It can be a problem when investors get too wrapped up in P/Es without understanding the company behind those valuations. P/E is a simple measure that people can easily latch onto and feel that they are understanding the fundamentals of a company. It is a useful measure, but more important would be an understanding of what it doesn't give you. It's too easy to avoid digging into annual reports and SEC filings and still feel like you know what's going on. Unfortunately, we don't have enough "analysts" or "pundits" pounding the drum of ROIC. At Dell, that has been a mantra second only to "The Direct Model" and a basis for profit sharing bonuses since the early 90s. They got "religion" early, and that puts them ahead of the rest of the industry. -musea