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An investor's guide to valuation. July 7, 2023

Motley Fool Money

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The Base Effect of Price to Sales

There should be an inverse relationship generally speaking, depending on the market size, between the size of a business and the size of the multiple. So there is simply a law of large numbers problem here. Trees don't grow to the sky. Which is why the Nvidia situation is so ridiculous. It's almost a trillion dollar company. There you go. Oh, it's just 163 billion US. Yeah, whatever. That's what I'm going to, obviously. And you think about if it's not. You're going to 20% a year, eventually we begin the world economy. that's what he said. Buffet himself has said, I am Berkeley Carke at previous strike rates

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