[QUOTE=GregWeld;388919]This took me awhile to upload - etc -
AND TO SEE THE CHARTS YOU'LL HAVE TO CLICK THE PDF LINK - But what I wanted to show was the relationship -- or the NON relationship between the P/E Ratio (price to earnings) and the RETURN on any particular stock. Back a few posts - someone asked whether or not I paid attention to the P/E's and I said - No... because they're really not relevant and it's too much information for me to keep track of - and I again referred to the "I" look at good charts / history / dividend / best of breed - over all these other technical "numbers.
What this chart is showing is the 3 MO - 1 YR - 5 YR Cumulative Return - and if you keep moving to the right - it shows the PRICE/EARNING RATIO.
What you'll see is really NO relationship of the 5 YR return vs the high or low P/E ratio. If I'd have chosen to NOT select a stock due to a "high" P/E ratio - I'd have LOST OUT on some very nice RETURNS.... So I just can't pay attention to too much data. Most of the time (like a political candidate?) they just don't tell the whole story.
Thanks. although I have the money management part together, and I have a lot of investments, I appreciate you taking the time to upload the information.
I still consider myself a Novice, and any info is appreciated.
I plan on both keeping my game plan going the way it is, and also adding to it. So now I have more food for thought.
One of the best threads
