Thursday, February 6, 2025

The P/E Ratio Trap

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Dealmaker's Diary: Don't Let This Common Metric Cost You Money

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Alpesh Patel

Alpesh Patel
Quantitative Investing Specialist

Does JPMorgan's low P/E ratio make it a better buy than Microsoft?

Not knowing that answer keeps many investors from capturing the market's biggest gains...

Microsoft trades at 33x earnings while JPMorgan sits at just 13x. Value investors would say JPMorgan is the obvious choice. But they're missing something crucial.

Look at Nvidia... trading at 48x earnings, yet it's been one of the market's best performers.

Here's the thing...

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While most big tech companies are burning through tens of billions chasing AI hype - with no clear path to profit... ONE STOCK is already way ahead of the game...

It's raking in tens of billions in profit per year...

CNBC reports it has over 2,000 AI patents... that's more than Tesla, OpenAI, Microsoft and Samsung-combined.

And according to Kiplinger, by the start of 2023 it had created more wealth for investors than Nvidia, Oracle, Intel, Taiwan Semiconductor, Facebook and Tesla .

Details Here
 

Focusing only on P/E ratios could leave you watching from the sidelines as the market's biggest winners soar past.

Tune in to today's Dealmaker's Diary to see what really drives stock returns. Don't miss these critical insights... NOW.

This the kind of research my clients pay thousands for... but you get it for FREE as a Total Wealth subscriber.

Click here or on the image below to dive in.

Happy hunting,

Alpesh

P.S. Let me know if you like this kind of video where I break down the best ways to look at stocks. Send a note to mailbag@manwardpress.com.

Video - Don't Fall for This Valuation Trap
 
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