High growth companies normally have high multiples
@Long_Equity：
High growth companies normally have high multiples. I created this table to show the relationship between growth and multiples👇 In short, a PE ratio of 50 requires a 20% earnings growth over 5 years to turn that multiple from 50 -> 20. FYI, I use FCF yield - not P/E. $.SPX(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $.IXIC(.IXIC)$ $NASDAQ 100(NDX)$ $Invesco QQQ(QQQ)$ $.DJI(.DJI)$ $FT Vest U.S. Equity Deep Buffer ETF - January(DJAN)$ Image Two things you can do to become a better investor: 1. Limit the number of companies you own 2. Limit how frequently you trade This forces you to: 1. Only own your best ideas 2. Accept there will always opportunities you miss out on
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