October 29, 2006
Decoding Dodge & Cox Doubletalk
From the Dodge & Cox Stock Fund Third Quarter Review (PDF):
By early 2000, with equity valuations at all-time highs, investors had become unreasonably optimistic and had bid up stock prices of certain companies to levels which implicitly incorporated expectations for future growth that even the ablest of management teams would be unable to satisfy. Leading companies with excellent business franchises and good prospects for long-term growth turned out to be poor investments because of excessive valuations.
In Plain English:
By early 2000, investors started to pay stupid prices for certain companies. Buying a piece of even a good business will turn out to be a poor investment if you pay a stupid price.
Cat: | Time: 10:15 pm (utc+8)
October 31st, 2006 at 9:00 am
Oi!