Low returns have followed
characteristics that are more similar to today — a CAPE ratio in the mid-20's, where
dividend yields, bond
yields, and inflation were below
average.
Most of our investments have
characteristics that have been associated empirically with above -
average investment rates of return over long measurement periods: a low stock price in relation to book value, a low price - to - earnings ratio, a low price - to - cash - flow ratio, an above -
average dividend yield, a low price - to - sales ratio compared to other companies in the same industry, a significant pattern of purchases by insiders, a significant decline in share price.
Low returns have followed
characteristics that are more similar to today — a CAPE ratio in the mid-20's, where
dividend yields, bond
yields, and inflation were below
average.