AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
43sec snip
The Myth of Cash on the Sidelines
The Compound and Friends
Earnings Growth Outpaces Valuation Concerns
In the context of stock investments, while stocks may appear expensive at a moment, the phenomenon of rising earnings growth can counterbalance valuation concerns. As earnings tend to trend higher, often achieving double-digit growth year over year, the increasing denominator in valuation calculations leads to the potential for rising stock prices even amidst decreasing valuations. This dynamic illustrates that stock prices may escalate as earnings grow, regardless of short-term valuation metrics.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode