Journalists and some analysts tend to love P/E ratio charts since they are easy to create from very available data. They fill space on a web page and seem useful! Michael Mauboussin explains why it is easy to reach broken conclusions from the chart here: expectationsinvesting.com/pdf/earnings.p… 
25iQuiz:
Are interest rates different now than they were during the Internet bubble?
"The most important item over time in valuation is obviously interest rates. Any investment is worth all the cash you're going to get out between now and judgment day discounted back." Buffett
Are interest rates different now than they were during the Internet bubble?
"The most important item over time in valuation is obviously interest rates. Any investment is worth all the cash you're going to get out between now and judgment day discounted back." Buffett
25iQuiz: Did Buffett refer to cash or earnings in the quote in the previous tweet?
When you visit a grocery this weekend will they accept "earnings" as payment? Will other vendors?
Is it fun to pretend a valuation based on a multiple doesn't bury a terminal value assumption?
When you visit a grocery this weekend will they accept "earnings" as payment? Will other vendors?
Is it fun to pretend a valuation based on a multiple doesn't bury a terminal value assumption?
