Saying that “there are only 3 correct ways to use this one indicator” sounds pretentious, we know. But so many investors really do use P/E incorrectly.
Glad you agree, Amrita. Seeing a low P/E ratio can make it so tempting to imagine, just for a second, that I'm the next Warren Buffett. 🥲 Thought I'd save others from making this mistake.
Great post! This is a super important topic in investing and thanks for breaking it down so beautifully.
Glad you agree, Amrita. Seeing a low P/E ratio can make it so tempting to imagine, just for a second, that I'm the next Warren Buffett. 🥲 Thought I'd save others from making this mistake.