In his book Time Ahead, Ryan highlights what he believes to be one of the biggest mistakes investors make: using outdated comparisons to value today’s markets.
On the Investing for Beginners Podcast, he shared why top-down macro analysis often misleads- and why it can be important to stop comparing today’s companies to those from decades ago without understanding how accounting has changed.
He wrote a full chapter called “Apples to Apples” to help investors look through the windshield, not the rearview mirror.
Ultimately, it comes down to this: How much cash can this investment produce going forward- and how confident can we be in that? That’s why Buffett talks about moats- they’re the key to reliable, forward-looking analysis.
Watch the clip for a fresh way to think about valuation in today’s market.