One of the greatest mistakes I see smart people making is assuming that the S&P 500 will yield 8% “because it always has”.
I would to introduce them to Japan’s Nikkei 225. If you bought the index in 1988 (!!!) your return would be negative 25 years later.
Turns out valuation matters.... See more
Identifying, Structuring, and Sizing a Value Trade
cluseau.com
The cohort of managers leading Japan’s companies today are almost exclusively engineers who have rebuilt their companies during a period of maximum pessimism. If anyone had an excuse for nihilism, it was that group. Yet they somehow managed to lead Japan towards what Jesper rightly calls Capitalism that Works . In the bargain, they formed the... See more
