Anathema Quote by Paul Tudor Jones
“The concept of paying one-hundred-and-something times earnings for any company for me is just anathema. Having said that, at the end of the day, your job is to buy what goes up and to sell what goes down so really who gives a damn about PE's?”
About This Quote
The speaker rejects high price‑earnings multiples as absurd, yet acknowledges that investing is fundamentally about buying rising assets and selling falling ones, rendering valuation metrics secondary.
In simple terms: PE ratios are dismissed, but market timing still matters.
Key Takeaway
Valuation ratios are not the sole driver of investment decisions.
Themes
investment philosophy
valuation
market timing
Mood
skeptical
pragmatic
Type
advice
observation
When to use this quote
- Portfolio construction
- Trading strategy discussions
Key Concepts
risk management
behavioral finance
Practical Applications
- Focus on price trends over static ratios
- Use momentum indicators
Questions to Reflect On
- What are the dangers of over‑relying on price momentum?
- How can PE ratios still inform long‑term decisions?
A Different Perspective
Ignoring fundamentals can lead to speculative bubbles.
