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mgk wrote

Sly (and Mike B.),

If I may - I think I understood your point (Sly) to be "that the market continually (or perhaps, better repeatedly) undervalues many gorillas" - "because the PE's of the gorillas look silly compared to the PE's of the others". (Liberally paraphrasing your sentence to impart a somewhat different sense.)

I think the part "regressing toward the mean" is confusing. Are you referring to other players in the same space as the "gorilla", or are you referring to the height of the P/E in relation to the "sea-level" of other equities in the entire ocean of the markets?


I was only talking about the former, but in my reply to Mike B's reply, I quoted material relating to both points you raise (nice coincidence -- huh?)
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