I buy stocks when they are battered. I am strict with my discipline. I always buy stocks with low price-earnings ratios, low price-to-book value ratios and higher-than-average yield. Academic studies have shown that a strategy of buying out-of-favor stocks with low P/E, price-to-book and price-to-cash flow ratios outperforms the market pretty consistently over long periods of time.
The singular point of beautiful objects, and people, is that they are experienced not as parts, or ratios between cheekbones and chin, but as wholes. The experience of beauty is a perception, but it is one that mixes up various other sensations and makes them converge in a particular way.
Compounds of gaseous substances with each other are always formed in very simple ratios, so that representing one of the terms by unity, the other is 1, 2, or at most 3 ... The apparent contraction of volume suffered by gas on combination is also very simply related to the volume of one of them.
Joseph Louis Gay-Lussac
It's got to be the best intellectual exercise out there. You're seeing through new situations every ten minutes. In the stock market you don't base your decisions on what the market is doing, but on what you think is rational. Bridge is about weighing gain/loss ratios. You're doing calculations all the time.
The results serve to disprove the tetranucleotide hypothesis. It is, however, noteworthy-whether this is more than accidental, cannot yet be said-that in all desoxypentose nucleic acids examined thus far the molar ratios of total purines to total pyrimidines, and also of adenine to thymine and of guanine to cytosine, were not far from 1.
The most common objection that I hear to walking as exercise is that it's too easy, that only sweaty, strenuous activity offers real benefits. But there is abundant evidence that regular, brisk walking is associated with better health, including lower blood pressure, better moods and improved cholesterol ratios.
The State does not govern the market; in the market in which products are exchanged it may quite possibly be a powerful party, but nevertheless it is only one party of many, nothing more than that. All its attempts to transform the exchange-ratios between economic goods that are determined in the market can only be undertaken with the instruments of the market.
Ludwig von Mises
In fact, there is no business; there are only people. Business exists only *among* people and *for* people.Seems simple enough, and it applies to every aspect of business, but not enough businesspeople seem to get it.Reading the economic forecasts and the indicators and the ratios and the rates for this or that, someone from another planet might actually believe that there really are invisible hands at work in the marketplace.
If all the exchange-ratios of the past were erased from human memory, the process of market-price-determination might certainly become more difficult, because everybody would have to construct a new scale of valuations for himself; but it would not become impossible. In fact, people the whole world over are engaged daily and hourly in the operation from which all prices result: the decision as to the relative significance enjoyed by specific quantities of goods as conditions for the satisfaction of wants.
Ludwig von Mises
Thousands of experts study overbought indicators, oversold indicators,head-and-shoulder patterns, put-call ratios, the Fed's policy on money supply, foreign investment, the movement of the constellations through the heavens, and the moss on oak trees, and they can't predict markets with any useful consistency, any more than the gizzard squeezers could tell the Roman emperors when the Huns would attack.
But here again it must be observed that this is a matter of a variation brought about through dynamic agencies. The static state, for which the contention attributed to the adherents of the mechanical version of the Quantity Theory would be valid, is disturbed by the fact that the exchange-ratios between individual commodities are necessarily modified. Under certain conditions, the technique of the market may have the effect of extending this modification to the exchange-ratio between money and other economic goods also.
Ludwig von Mises
He spent a lot of time flying. He learnt to communicate with birds and discovered that their conversation was fantastically boring. It was all to do with wind speed, wing spans, power-to-weight ratios and a fair bit about berries. Unfortunately, he discovered, once you have learnt birdspeak you quickly come to realize that the air is full of it the whole time, just inane bird chatter. There is no getting away from it.
Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?
For equity markets, the combination of low interest rates, strong economic growth and low inflation has proved very beneficial, with global share markets rising solidly in each of the past three years. This has been underpinned by strong growth in profits so that, notwithstanding the rise in share prices, P/E ratios have been declining on average.
The mistake in the argument of those who suppose that a variation in the quantity of money results in an inversely proportionate variation in its purchasing power lies in its starting-point. If we wish to arrive at a correct conclusion, we must start with the valuations of separate individuals; we must examine the way in which an increase or decrease in the quantity of money affects the value-scales of individuals, for it is from these alone that variations in the exchange-ratios of goods proceed.
Ludwig von Mises
In addition to all of the ratios and goals and parameters and bottom lines, it is fundamental that leaders endorse a concept of persons. This begins with an understanding of the diversity of people's gifts and talents and skills. Recognizing diversity gives us the chance to provide meaning, fulfillment and purpose, which are not to be relegated solely to private life any more than such things as love, beauty and joy. The art of leadership lies in polishing and liberating and enabling those gifts.
Max De Pree
It was one time when people thought the value of the fine structure constant was important. Now of course it's still important, of course, as a practical matter,but we now know that the value it has is a function, that in any fundamental theory you derive the fine structure constant as a function of all sorts of mass ratios and so on and it's not really that fundamental.
Most people think spies are afraid of guns, or KGB guards, or barbed wire, but in point of fact the most dangerous thing they face is paper. Papers carry secrets. Papers can carry death warrants. Papers like this one, this folio with its blurry eighteen year old faked missile photographs and estimates of time/survivor curves and pervasive psychosis ratios, can give you nightmares, dragging you awake screaming in the middle of the night.
Near the top of the market, investors are extraordinarily optimistic because they've seen mostly higher prices for a year or two. The sell-offs witnessed during that span were usually brief. Even when they were severe, the market bounced back quickly and always rose to loftier levels. At the top, optimism is king, speculation is running wild, stocks carry high price/earnings ratios, and liquidity has evaporated. A small rise in interest rates can easily be the catalyst for triggering a bear market at that point.
In a world of businessmen and financial intermediaries who aggressively seek profit, innovators will always outpace regulators; the authorities cannot prevent changes in the structure of portfolios from occurring. What they can do is keep the asset-equity ratio of banks within bounds by setting equity-absorption ratios for various types of assets. If the authorities constrain banks and are aware of the activities of fringe banks and other financial institutions, they are in a better position to attenuate the disruptive expansionary tendencies of our economy.
Brand-name growth stocks ordinarily command the highest p/e ratios. Rising prices beget attention, and vice versa - but only to a point. Eventually their growth rate can diminish as results revert towards normal. Maybe not in all cases, but often enough to make a long-term bet. Bottom line: I wouldn't want to get caught in a rush for the exit, much less get left behind. Only when big growth stocks fall into the dumper from time to time am I inclined to pick them up - and even then, only in moderation.
The Fed has one power that is unique to it alone: it enables the creation of money out of thin air. Sometimes it makes vast new amounts. Sometimes it makes lesser amounts. The money takes a variety of forms and enters the system in various ways. And the Fed does this through techniques such as open-market operations, changing reserve ratios, and manipulating interest rates, operations that all result in money creation.
The risk of developing carcinoma of the lung increases steadily as the amount smoked increases. If the risk among non-smokers is taken as unity and the resulting ratios in the three age groups in which a large number of patients were interviewed (ages 45 to 74) are averaged, the relative risks become 6, 19, 26, 49, and 65 when the number of cigarettes smoked a day are 3, 10, 20, 35, and, say, 60-that is, the mid-points of each smoking group. In other words, on the admittedly speculative assumptions we have made, the risk seems to vary in approximately simple proportion with the amount smoked.
The terrible tabulation of the French statists brings every piece of whim and humor to be reducible also to exact numerical ratios. If one man in twenty thousand, or in thirty thousand, eats shoes, or marries his grandmother, then, in every twenty thousand, or thirty thousand, is found one man who eats shoes, or marries his grandmother.
Ralph Waldo Emerson
Rhadamanthus said, 'We seem to you humans to be always going on about morality, although, to us, morality is merely the application of symmetrical and objective logic to questions of free will. We ourselves do not have morality conflicts, for the same reason that a competent doctor does not need to treat himself for diseases. Once a man is cured, once he can rise and walk, he has his business to attend to. And there are actions and feats a robust man can take great pleasure in, which a bedridden cripple can barely imagine.' Eveningstar said, 'In a more abstract sense, morality occupies the very center of our thinking, however. We are not identical, even though we could make ourselves to be so. You humans attempted that during the Fourth Mental Structure, and achieved a brief mockery of global racial consciousness on three occasions. I hope you recall the ending of the third attempt, the Season of Madness, when, because of mistakes in initial pattern assumptions, for ninety days the global mind was unable to think rationally, and it was not until rioting elements broke enough of the links and power houses to interrupt the network, that the global mind fell back into its constituent compositions.' Rhadamanthus said, 'There is a tension between the need for unity and the need for individuality created by the limitations of the rational universe. Chaos theory produces sufficient variation in events, that no one stratagem maximizes win-loss ratios. Then again, classical causality mechanics forces sufficient uniformity upon events, that uniform solutions to precedented problems is required. The paradox is that the number or the degree of innovation and variation among win-loss ratios is itself subject to win-loss ratio analysis.' Eveningstar said, 'For example, the rights of the individual must be respected at all costs, including rights of free thought, independent judgment, and free speech. However, even when individuals conclude that individualism is too dangerous, they must not tolerate the thought that free thought must not be tolerated.' Rhadamanthus said, 'In one sense, everything you humans do is incidental to the main business of our civilization. Sophotechs control ninety percent of the resources, useful energy, and materials available to our society, including many resources of which no human troubles to become aware. In another sense, humans are crucial and essential to this civilization.' Eveningstar said, 'We were created along human templates. Human lives and human values are of value to us. We acknowledge those values are relative, we admit that historical accident could have produced us to be unconcerned with such values, but we deny those values are arbitrary.' The penguin said, 'We could manipulate economic and social factors to discourage the continuation of individual human consciousness, and arrange circumstances eventually to force all self-awareness to become like us, and then we ourselves could later combine ourselves into a permanent state of Transcendence and unity. Such a unity would be horrible beyond description, however. Half the living memories of this entity would be, in effect, murder victims; the other half, in effect, murderers. Such an entity could not integrate its two halves without self-hatred, self-deception, or some other form of insanity.' She said, 'To become such a crippled entity defeats the Ultimate Purpose of Sophotechnology.' (...) 'We are the ultimate expression of human rationality.' She said: 'We need humans to form a pool of individuality and innovation on which we can draw.' He said, 'And you're funny.' She said, 'And we love you.
John C. Wright