The common sense gods must have been listening.
This weekend I wrote the following:
This is really silly. Here are seven companies that make up just over 70% of my portfolio.
PE's LGIH 13.97 SWKS 14.15 SKX 16.28 INBK 16.28 SNCR 16.69 AMBA 17.07 SEDG 17.72
Their average PE is 16.02. The current PE ratio for the S&P 500 is 21.32. That’s 21.32 ! What’s the growth rate of earnings for the S&P? Perhaps 10%? What is the average trailing growth rate of these seven companies? Their average is 88%.
Well the common sense gods must have been listening! Here were the gains of these seven companies yesterday:
LGIH 2.41% SWKS 4.23% SKX 10.15% INBK 2.80% SNCR 3.05% AMBA 1.25% SEDG 4.90%
The average of the seven was up 4.11%…in a day.
My two biggest positions (SWKS and SKX, as everyone knows) were up an average of 7.19%.
Who knows if it will continue, and there’s a long way to go, but it’s a nice start. I hope that some of you profited too.