If history repeats itself, and the unexpected always happens, how incapable must Man be of learning from experience. – George Bernard Shaw One of the key themes in the holy grail of value investing literature, Benjamin Graham’s Intelligent Investor, is that the author has absolutely no patience for those analysts who work from forward forecasts. In particular, Graham notes that the rising trend of analysts predicting stock prices based on forward forecasts is distorting the market and misleading investors. Earnings estimation trends have increased Unfortunately this trend has only increased, reaching fever pitch in the late 90’s and 2007 as…
Examples of Forward Earnings Estimates Getting Control
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk