Phil Oakley 

Share prices contain valuable information: here's how to use it

Phil Oakley

Share prices contain valuable information: here's how to use it

One of the most important things to recognise as an investor is that you cannot predict the future with any accuracy. That doesn’t stop thousands of people trying to do exactly that. It took me a long time to realise that trying to predict a company’s future profits and cash flows is essentially a waste of time and you shouldn’t listen to anyone who says that they can. Instead, it’s much better to try to work out what a company’s share price is implying about the future of a company and take a view as to whether that is realistic or not.

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