Value Investing What makes product price inflated and what makes not?

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• What makes product price inflated and what makes not?
• Expected % Market Gain from New Tax Laws
• Growth is always a component of value [and] the very term "value investing" is redundant
• Software development companies - what to watch out for

What makes product price inflated and what makes not? Posted: 28 Jan 2018 11:03 PM PST In the 80s, Price for one can of Campbell's Tomato Soup was only 25 cents and now it's $1.25 for same quality and quantity. Meanwhile, Price for Personal Computer was about $2,000 in same period. nowadays we can get like x1000 better performance computer for same price. The thing is that there are far more competitors in food industry but they were able to raise the price. In contrast, Computer industry couldn't able to raise the price even though they've invested much more capital than Food industry. What makes the difference? submitted by /u/99rrr [link] [comments]

Expected % Market Gain from New Tax Laws Posted: 28 Jan 2018 12:56 PM PST I am curious to hear what people have heard about the impact of the tax law on earnings, and therefore, the value of the stock market. Basically, all things equal, I would expect that the earnings gains will create more value for each share of stock, thus increasing the price of the stock. Basic economics. What I am curious to hear is if anyone has seen any type of measurement which looks across the market, and says assuming an average market P/E of 20x earnings, and further assuming earnings gains of x%, we would expect the market to now be market +x%. Any thoughts? submitted by /u/thats_taken_also [link] [comments]

Growth is always a component of value [and] the very term "value investing" is redundant Posted: 28 Jan 2018 02:06 PM PST But how, you will ask, does one decide what [stocks are] "attractive"? Most analysts feel they must choose between two approaches customarily thought to be in opposition: "value" and "growth,"...We view that as fuzzy thinking...Growth is always a component of value [and] the very term "value investing" is redundant. -- Warren Buffett, Berkshire Hathaway (BRK.A) annual report, 1993 https://www.valuentum.com/articles/20120911 submitted by /u/lingben [link] [comments]

Software development companies - what to watch out for Posted: 28 Jan 2018 02:31 PM PST Looking at 2 sub-industries of the broader software development industry. Any recommendations for a novice in the sector in terms of red flags and what to watch out for in the analysis incl financials / valuation / key risks? Thanks submitted by /u/sjulz31 [link] [comments]

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