Jack Bogle Told Us This Was The Most Important Chart Of The Year
Jack Bogle, pioneer of the index fund, sent us this classic.
It's of the Dow Jones Industrial Average's price-book ratio, a measure that popularized by Ben Graham, the godfather of valuation.
Book value is the difference between a company's assets and liabilities. The lower the price-book value, the cheaper.
However, this does not mean you should only invest with the expectation that this measure will immediately revert to its mean.
In fact, this measure (and many other valuation measures) will drift from long-term averages for long periods of time. It's further proof that markets will be irrational longer than you can stay solvent.
- Beijing says it's 'natural' for the US to 'feel sour' after Boeing loses out to Airbus on $37 billion China plane deal
- Ukraine's drones are becoming increasingly ineffective as Russia ramps up its electronic warfare and air defenses
- Coinbase-backed Indian crypto exchange Vauld suspends trading, deposits and withdrawals amid market downturn
- 30 large reservoirs in India dip to a decadal low after erratic rains in June
- Tata Motors, Kotak Mahindra Bank, IndusInd Bank among stocks to watch out for on July 5
- Best face wash for men in India
- Bajaj in top gear, Hero flat while Maruti declines – here’s how Indian auto cos performed in June 2022
- Revenge shopping and revenge travelling trends are simmering down in India