No. of Recommendations: 4
tedthedog, could you give the range of ratio values within each bin?Here's the lower limit and upper limit of the ratio values in each bin (with the mean CAGR per bin, as before).
Bin Lower Upper MeanCAGR
1 0.6609 1.0137 17.8
2 1.0141 1.0800 15.4
3 1.0800 1.1144 13.8
4 1.1145 1.1430 11.4
5 1.1430 1.1759 12.8
6 1.1759 1.2128 12.1
7 1.2128 1.2527 7.9
8 1.2528 1.3059 6.5
9 1.3060 1.3684 5.7
10 1.3684 1.5694 4.1
Here's a link to a scatterplot of CAGR versus the SMA based 'value' measure, i.e. a plot of the data that made the above table
https://www.dropbox.com/scl/fi/nlj5dhm9mpoizonczxe...One can see a definite trend where BRK has better forward returns when it is 'cheap' than when it is 'expensive'. FWIW, the correlation is -0.42
One can also see that a table that reports the mean value of CAGR in bins of the 'value measure' can provide an unclear view of the data.
Given the relatively short forward return period, such a plot using Jim's value measure would probably also look messy, i.e. a broad smear, but I'd guess less "gappy" in the vertical directions at the ends.
