Dollars and Jens
Thursday, November 09, 2006
 
Dodge and Cox methodology
An interview with a couple of money managers from Dodge and Cox. I was struck by the emphasis on price to sales ratios. I seem to recall hearing a few years back that, historically, stocks with sub-median P/S ratios have outperformed stocks with sub-median P/E ratios and those with sub-median P/B ratios, but I think of P/E ratios as a better indicator, particularly if the E is over a longer period of time than a year.

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