Originally Posted by
winner69
When percy bought 10 years ago at $2.20 FPH were on track to an EPS of 12.2 cents --- a PE of 18. Today the PE is 34 on forecast F22 earnings
Just shows when you buy on modest PEs ones long term returns are far superior than buying at elevated PEs
If FPH was still on a PE of 18 its share price today would be about $11.50 ..... so the other $10.76 is what all the excited punters have added to the share price. And Percy and others have cashed in on this excitment (to the tune of 10 bucks a share) - well done to them.
The PFH share price has increased by $20 since Percy bought 10 years ago - about $9.24 has come from FPH performance (increased earnings) and the other $10.76 come from market excitment / hype
Back to today - remember superior long term returns generally result from buying at reasonable prices (Beagle has a term for that) ..... buy at elevated prices and long term returns are more subdued (sometimes negative)
So today we appear to have a few waiting for that reasonable price to happen (and get long term returns) and we have a few long term holders hanging in there and hoping that their long term returns don't dissipate too much more .