Thierry from arvy 🇨🇭@ThierryBorgeat
51% of the S&P 500's market cap is in stocks trading above 10x sales.
Half the index.
In 2002, after Sun Microsystems crashed 90%, CEO Scott McNealy famously said this about his own stock at 10x sales:
"At 10x revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. Zero costs. Zero R&D. Zero taxes. Zero employees. What were you thinking?"
He was explaining why investors had been insane to pay it.
Today, half the S&P 500 trades there.
Different decade. Same math.