Terry Smith: What is a reasonable PE ratio? (for a 7% annual return in companies he has owned)

Note. For a return higher than 7%, the PE ratio at purchase, must be much lower.
In 1973 these companies where mid cap (mature companies cannot continue to grow at the same rate)
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[@uropy]

Basically it means value investing is for short term horizon.

[@GiveMeBJJ]

Do you know where I can find the full video?

[@thevalueinvestingchannel20]

ruclips.net/video/0HRgxqpYD0E/видео.html

[@GiveMeBJJ]

@@thevalueinvestingchannel20 awesome, appreciate it

[@thevalueinvestingchannel20]

@@GiveMeBJJ Thank you. I am glad it helped!

[@53nat0r]

❤

[@vidya014]

For 7% Return in company (ROIC=Net Income ÷ Invested Capital), the fair P/E is 7.