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Reasons to keep Nvidia, Amazon and Apple

The Compound and Friends

NOTE

Importance of evaluating forward PE ratio

The speaker highlights the importance of considering the forward price-to-earnings (PE) ratio when assessing the valuation of stocks. They make a comparison with Nvidia's situation last year, explaining how despite a significant price increase, the forward multiple made it appear cheap. The speaker suggests that a similar scenario may be applicable to Amazon's current situation, where the stock price has increased substantially over the past year.

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