Selling at sixty times earnings

We went short Polaroid when it was selling at sixty times earnings, which we thought was absurd; it then went to seventy times earnings. The market seemed to lose track of reality, and we found ourselves asking, ‘What is the difference between forty times earnings and eighty times earnings?’ By putting a different number on the secular growth rate estimate, you could justify almost any multiple. That is how people were thinking in those days. – Michael Steinhardt

Selling at sixty times earnings

Igor Marinkovic

Electronic engineer, futures trader and property investor and total beginner in making good web sites