What statistic could replace earnings in the "Amazon era?"

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farmerjohn1324

By "Amazon era," I mean that companies can now have zero or little earnings and still be desirable companies. This is only if they are spending their potential earnings on reinvestment in the company to increase future earnings.

What statistic should I be looking for on the financial statements? Earnings plus CAPEX? Am I on the right track?
 
farmerjohn1324 said:
Ok but do you know?
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I know that these funnymentals metrics have almost zero predictive power.

Any known fact about a stock, commodity or currency is already factored in the price anyway, so look at the chart and it will tell you the truth, the whole truth and nothing but the truth.
 
Tradex said:
I know that these funnymentals metrics have almost zero predictive power.

Any known fact about a stock, commodity or currency is already factored in the price anyway, so look at the chart and it will tell you the truth, the whole truth and nothing but the truth.
More...

I disagree.

Trying to use "technical analysis" of chart patterns is what has no predictive power.

When something happens to the economy, companies with good fundamentals (consistently strong earnings, low debt, etc.) will weather the storm much better than those that don't.
 
farmerjohn1324 said:
companies with good fundamentals (consistently strong earnings, low debt, etc.) will weather the storm much better than those that don't.
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Nope.

Some will but others won't.

Trade the direction of the market, not "good" or "bad" companies. I always want to scream when I hear people say : "Oh it's a good company, I am buying, you should too!"

It's all about being on the right side of the market, long or short, the rest is just conversation.

But don't even believe me, you will eventually come to the same conclusion at some point in time.
 
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If you are serious ,take a look at portfolio123.Its the best fundamental backtester on the market..

You won't find answers you seek here..just clues

farmerjohn1324 said:
By "Amazon era," I mean that companies can now have zero or little earnings and still be desirable companies. This is only if they are spending their potential earnings on reinvestment in the company to increase future earnings.

What statistic should I be looking for on the financial statements? Earnings plus CAPEX? Am I on the right track?
More...
 
farmerjohn1324 said:
I disagree.

Trying to use "technical analysis" of chart patterns is what has no predictive power.

When something happens to the economy, companies with good fundamentals (consistently strong earnings, low debt, etc.) will weather the storm much better than those that don't.
More...


your first mistake is thinking you can predict anything when speaking about the market.
 
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