2min chapter

The Compound and Friends cover image

The Day Inflation Broke

The Compound and Friends

CHAPTER

Why Are Multiples So High?

The reason multiples are as high is because tech and communication services have grown margins over the last 10 years. Those two sectors account for 100% of the market's margin expansion. If Apple ever trades at a 10 multiple, that's precisely the time you don't want to own it. And that's what makes investing so hard.

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