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The Year Everyone Got Wrong

The Compound and Friends

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Analysis of Valuations in the Video Industry

This chapter discusses the historical performance of expensive stocks in the video industry, particularly those with high price to sales ratios. It explores the short-term outperformance of these stocks but highlights their struggle to maintain performance after 12 months. The chapter also highlights the difficulty of finding winning stocks over a long period of time, using Cisco as an example.

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