Cook: In investing, good ideas become bad when taken to valuation extremes
Will Cook · Will Cook - Sunriver Management (Manager Meetings, EP.22) · Dec 2, 2021 · at 1:01:25
Will Cook, founder of Sunriver Management, shares his core investing philosophy regarding valuation discipline and the dangers of extreme valuation multiples.
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“A good idea taken to an extreme becomes a bad idea. And I think that's true in life and it's definitely true in investing. As an example I mentioned earlier, people have gone from talking about 20 to 30 times earnings for a good growth company to 20 to 30 times EBITDA and now 20 to 30 times revenues.”
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