I started my career in finance during the tech bubble of the late 1990s and the subsequent bust in the early 2000s. Back then, one of the hard lessons I learned was that a lot of shenanigans can be justified by assuming high long-term earnings growth. But when that earnings growth doesn’t materialise, share prices can come down a long way even though the immediate outlook for next years earnings remains the same.
On the importance of long-term earnings forecasts
On the importance of long-term earnings…
On the importance of long-term earnings forecasts
I started my career in finance during the tech bubble of the late 1990s and the subsequent bust in the early 2000s. Back then, one of the hard lessons I learned was that a lot of shenanigans can be justified by assuming high long-term earnings growth. But when that earnings growth doesn’t materialise, share prices can come down a long way even though the immediate outlook for next years earnings remains the same.