thanks again for this great analysis! Do you look at historical average valuation ratios? - you might include them into your videos. A p/e of 20 or lower for IDEXX will probably not happen any time soon
I do, but on an index basis or broad market basis not for individual stocks. I judge all stocks on an opportunity cost basis not against itself or it’s industry. Because I have thousands of other options why limit myself to only looking at the history of this stock. If I can’t buy this particular stock, I can always find another that is cheap and high quality
Good point about opportunity cost. There are roughly 5000 publicly traded companies, do you also take consideration in the opportunity cost of spending hundreds of hours to find that one company that's marginally better? Walgreens may look cheap today but expensive tomorrow if they eventually go bankrupt. Idexx may look expensive today but cheap when looking back years from now if they continue to grow their earnings and maintain their leadership position. There is a semiconductor company where if you paid 600x earnings 20 years ago, and would still be up today. I have stocks in my portfolio that trades at 5x earnings and stocks that trades at 50x earnings like Idexx, happy to own both. I enjoy watching your videos because your approach is different than mine. I'm sure we'll agree to disagree on Idexx but I respect your view.
You're on a roll.... Most valuble breakdown
Thank you
if you get a chance, i would appreciate your take on Clearfield, CLFD. great videos!
thanks again for this great analysis! Do you look at historical average valuation ratios? - you might include them into your videos. A p/e of 20 or lower for IDEXX will probably not happen any time soon
I do, but on an index basis or broad market basis not for individual stocks. I judge all stocks on an opportunity cost basis not against itself or it’s industry.
Because I have thousands of other options why limit myself to only looking at the history of this stock. If I can’t buy this particular stock, I can always find another that is cheap and high quality
Good point about opportunity cost. There are roughly 5000 publicly traded companies, do you also take consideration in the opportunity cost of spending hundreds of hours to find that one company that's marginally better?
Walgreens may look cheap today but expensive tomorrow if they eventually go bankrupt.
Idexx may look expensive today but cheap when looking back years from now if they continue to grow their earnings and maintain their leadership position.
There is a semiconductor company where if you paid 600x earnings 20 years ago, and would still be up today.
I have stocks in my portfolio that trades at 5x earnings and stocks that trades at 50x earnings like Idexx, happy to own both.
I enjoy watching your videos because your approach is different than mine. I'm sure we'll agree to disagree on Idexx but I respect your view.
Thanks for your analysis. I really like the way you analyze companies. Any chance you will be doing PM or ROP any time soon?
Would probably touch on it eventually