Most investors think a $400 stock is “expensive” and a $40 stock is “cheap.” That’s how you lose money. Stock prices tell you nothing without the context of what a company earns, what it’s growing, and what multiple you’re paying for that growth. Which is why valuation is such a crucial part of the 6-week investing challenge. Let me show you what I mean with a real example. Nvidia trades around $130 and is “expensive” according to most commentators. Procter and Gamble trades around $170 and is “safe.” Sounds simple, right? Buy the safer, cheaper one. Here’s what’s actually under the hood. Nvidia trades at roughly 23x forward earnings and is growing earnings at 50% annually. Procter and Gamble trades at roughly 25x forward earnings and is growing at single digits. You’re paying a higher multiple for P&G than you are for Nvidia. And for that premium, you’re getting a small fraction of the growth. That doesn’t mean P&G is a bad company. It’s a terrific company. But at today’s prices, it’s priced for perfection while Nvidia is priced as if the growth is about to stop, when it’s nowhere close to stopping. This is the kind of thing Wall Street analysts get paid six figures to figure out. Most individual investors never learn it because most of the finance media is obsessed with stock price instead of valuation. I’m a CPA. Reading financial statements is what I do. And I can tell you the single skill that has mattered most in my own investing career is the ability to spot when the market has priced a quality company incorrectly. That’s what I teach on Week 5 of the Challenge.
We kick off Monday: You can get all the details and save your seat here Mark Roussin, CPA Roussin Financial It’s my mission to bring investing to the masses. I’ve watched too many people go on year after year throwing their money away—in risky investments, handing it over to a financial advisor, or even worse, just leaving it sitting in cash—to sit by idly. So, after leaving my big 4 accounting career and having a successful investing career of my own, I’m sharing what it takes to build an investing strategy that can earn you enough passive income each year to live your life financially free. I love the community we’ve created and love sharing anything and everythingI can to help you grow your wealth and invest with confidence. We love to help you create the freedom you’ve always dreamed of with a business based on email. Every day it’s my mission to help regular people like you achieve their wildest dreams and invest with confidence. As much as we care about all of that, I also care about your privacy. Roussin Financial is owned and operated by Roussin Financial, LLC. We are committed to advising you of the right to your privacy, and strives to provide a safe and secure user experience. Our Privacy Policy explains how we collect, store and use personal information, provided by you on our website. It also explains how we collect and use non-personal information. By accessing and using our website, you explicitly accept, without limitation or qualification, the collection, use and transfer of the personal information and non-personal information in the manner described in our Privacy Policy. Read the Policy on our website(s) carefully, as it affects your rights and liabilities under the law. If you disagree with the way we collect and process personal and non-personal information, please do not use this website. This Policy applies to this website as well as all webpages Email Empire hosts. It regulates the processing of information relating to you and grants both of us various rights with respect to your personal data. It also informs you of how to notify us to stop using your personal information. We are located in the United States of America. You may be located in a country that has laws which are more restrictive about the collection and use of your personal information. However, by using our website, you agree to waive the more restrictive laws and agree to be governed by the laws of the United States of America. If you wish to view our official policies, please visit our website. |
Sabtu, 25 April 2026
Why Nvidia isn’t expensive
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