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Recommendations: 1
Do the current CAGR & 20yr CAGR have significance in selecting a nicely beaten down stock with out worrying about how many years it will take to recover.
No.
In my opinion you always have to worry if a company will recover at all, not just how many years it might take if you choose to buy stock that has fallen significantly in price.
All the charts can tell you is that a stock is experiencing a price contraction relative to its history. You should never buy a stock just because it appears cheap.
What you can do is after identifying stocks that appear to be cheap is dig. Try and find out why the stock is cheap, remembering that a stock has a company behind it. Has something fundamental changed about the company's business; its customers; its management, etc. Are the problems the company is experiencing likely temporary or not? Easy advise, but much harder to follow and profitably put into practice.
kelbon
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