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Tweet by 10-K Diver
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Aug 7, 2021
#Investment
10-K Diver
@10kdiver
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Get a cup of coffee.
In this thread, I'll show you how the P/E ratio of a portfolio is related to the P/E ratios of its individual stocks.
The math here is beautiful. It involves harmonic means and a super elegant theorem known as the Cauchy-Schwarz Inequality.
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Jim OShaughnessy
@JimOShaughnessy
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Aug 8, 2021
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Good thread on how to calculate your total portfolio PE ratio.