Keep INVESTING Simple and Safe (KISS)*****
Investment Philosophy, Strategy and various Valuation Methods*****
Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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Thursday, 9 July 2009
Earnings Yield
A greater revelation occurs when the PE ratio is turned upside down. The inverse ratio, known as earnings yield, tells the annual percentage rate of return implied by the PE. It is simply 1/(PE).
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