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Re:Why Index Funds Are Like Subprime CDOs by beat on Wednesday September 04, 2019 @03:04PM (#20880359)
I wouldn't say simple reductionist valuation models are inadequate... just incomplete. Most of the time, a deeper analysis should be in line with rule-of-thumb tools like P/E. This is even more true for large companies that value not-losing over winning big.

If you can come up with a clever valuation mechanism that can reliably outperform the well-understood mechanisms, then enjoy pocketing the profits!

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