2min chapter

We Study Billionaires - The Investor’s Podcast Network cover image

RWH016: The Best Of The Best w/ François Rochon

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

The Correlation Between Owner Earnings and Stock Market Quotations

The correlation is so striking when I look at your shareholder letters that it's worth actually kind of dwelling on the numbers. By doing this I think I helped myself get more impervious market quotations and I know that over the long part we're many many years if I'm right in the owner earnings part the quotations of the stock market will eventually reflect that. So far my experience has been since 1996 that there's been a very very strong correlations between the increase of the owners on the companies we own and the quotation is a stock market. The correlation is kind of amazing. It is amazing I think the fundamental process that lies behind the approach of value investing If the value increases but let's say 1

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