"Ausbiz"

Unpacking the benefits of a high-conviction portfolio | Equity Mates

Submitted by ujjwal on

Are earnings estimates too high? It’s a question being repeatedly asked, as the market speculates about the economic outlook. But perhaps the first question should be: are historic earnings too high?

It isn’t uncommon for management teams to systemically overstate their company’s profitability and skew the starting point for evaluating a company’s outlook. In recent years, short-term narratives have often trumped financial reality.

Tags