Lesson 12: Cheap multiples revert — until the business changes. Telling the difference is the whole game.
Two cheap stocks. Both bounce back?
A bank in a passing scare. A newspaper losing readers every year.
Mean Reversion vs Secular Change
Lesson 12: Cheap multiples revert — until the business changes. Telling the difference is the whole game.
A bank in a passing scare. A newspaper losing readers every year.