Valuation matters too, of course, but less than it did to value investing Nelson.
Not exact matches
Too many founders worry about negotiating the last dime on the
valuation instead of realising that it won't really
matter if they are able to build a large successful business.
Thus, what
matters are relative
valuations across assets rather than putting
too much emphasis on historical
valuations that belonged to a very different economic environment.
Of course
valuations matter, so you can pay
too much for good quality companies.
Stock prices are more focused on the items that really
matter, which include corporate profits, interest rates,
valuations (price levels), and sentiment (i.e., determining whether investors are
too optimistic or
too pessimistic).
It doesn't really
matter, they'll find it... And if one
valuation metric's
too high, you can be sure they'll find a cheaper one.