Stocks that double within five years and then drop 30% in a month are generally best avoided, as such sharp declines often indicate serious underlying issues.

Market valuation metrics like P/E ratios have limited predictive power over short-term (1-3 years) market performance, with long-term context (15-20 years) being more relevant for understanding trends.

Historical S&P 500 forward earnings multiples have ranged dramatically, from as high as 22 to as low as 9, indicating that valuation alone is not a... See more

The research emphasizes comparing returns relative to industry peers to avoid sector bias, confirming that broken compounders underperform their sector averages by about 10% over the following year.