2000 Math Valuation 
Mr. Money Mustache
FEBRUARY 25, 2025
For example, if the house brings in $2000 per month ($24,000 each year) and the sale price is $240,000, the next investor is buying a business with a price-to-earnings ratio of 10, because 240k/24k=10. Its just basic math. But if you manage to convince someone to hand over $480,000 for that same house, youve sold at a P/E of 20.
The Big Picture
FEBRUARY 6, 2024
I’d say management consulting is any of the other thing that least at that time was the other career trajectory, just my personality, more of a math oriented introvert. In 2000, right. But in extremis, which is the Microsoft and the Tonight 2000 example and maybe some other AI related stocks today, it really does matter.
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The Irrelevant Investor
MARCH 10, 2017
Needless to say, when stocks are going straight up, some funky things happen to valuations. In a Howard Marks memo from January 2, 2000, he wrote "It is reported that the average new issue of 1999, which on average is probably about six months old, is selling roughly 160% above its issue price. The math on this one, wow.
The Big Picture
SEPTEMBER 3, 2024
But there’s always gotta be some element of the valuation really being compelling. But even in the book I wrote in 2014, you could see that the focus on competitive advantage can never be absolute, you always have to take valuation into consideration. But maybe second to valuation as a primary consideration.
The Big Picture
AUGUST 20, 2024
00:03:14 [Mike Greene] So that was actually an outgrowth from my experience coming out of Wharton and you mentioned the, the, you know, the transition of people who tended to be skilled at math or physics into finance. We built a company that was focused on valuation, initially, actually targeting corporate strategic planning departments.
The Big Picture
SEPTEMBER 10, 2024
He has a very interesting approach to thinking about market valuations and strategies and when to deploy capital, when to go with the crowd, when to lean against the crowd, and has amassed and excellent track record. And then I developed this macro affinity starting in 2000, really? Well, that means valuations are probably too high.
The Big Picture
JANUARY 21, 2025
But the numbers you can’t argue with, I mean, we all know that the brutal math of investing before costs investors collectively will earn the market return after costs. You, you wrote at the journal through the.com implosion as well as the whole runup to 2000 September 11th, the great financial Crisis. I did it in 2000, 2002.
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