I look at long term trends in the market and try to understand what I am missing. For example, amazon has always sold for an astronomical PE and I thought it was over-valued. However, the continued over-valuation, had me puzzled and I started reading up more on it. I cannot get into the specifics here, but amazon is a case where the company is investing via its P&L (expensing the investments) due to which its current profits are suppressed. Think of it as a collection of businesses where one ...

I look at long term trends in the market and try to understand what I am missing. For example, amazon has always sold for an astronomical PE and I thought it was over-valued. However, the continued over-valuation, had me puzzled and I started reading up more on it. I cannot get into the specifics here, but amazon is a case where the company is investing via its P&L (expensing the investments) due to which its current profits are suppressed. Think of it as a collection of businesses where one ...