... a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.
WARREN BUFETT
5
15 reads
Similar ideas
P/E Ratio (Price per Earning)
Let's say that a company's stock trades for $100 and that the company has earnings per share (EPS) of $6.50 over the last 12 months.
We can calculate a trailing ("last 12 months") P/E ratio for that stock by simply dividing the stock price ("P") by the EPS ("E"), so 100/6.50 equals about 1...
Sound portfolio
®The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizeble advances.
®Stock of a company with a lot of surplus cash and nothing ahead of the common is clearly a better purchase (at the same price) than an other one with ...
What Is A Stock?
- A stock is a share of ownership in a company.
Ex: When I buy 100 shares of McDonald's, I become a partial owner of the company. I become a "shareholder."
- Stocks move based on the laws of supply and demand. If a lot of people want to buy a stock, the sh...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates