Originally Posted by
Gerald
Actually go back and look at history. AAPL grew EPS from $0.10 in 2007 to $1.50 in 2013, and despite this it traded on a PE of around 9 in 2013. If it had traded on the current mutiple of 30 back then as one could have argued it deserved you would have only received a 318% return over the next 9 years rather then the actual 1153% return. Hence the majority of the return from AAPL was actually mutiple rerating which you are much less likely to get with FPH as the mutiple should actually contract as growth decreases from a larger base as it grows.
At a certain price a great company like FPH can be a worse investment then an average company like TRA or TWR. Hence your argument should be why FPH is cheap at the current price and will outpreform the expectations baked into the current price, rather then "oh this is a great blue chip, can't loose money, pay any price" etc etc.