Should an Investor Seek Companies with Low P/Es or High

question 32

Essay

Should an investor seek companies with low P/Es or high P/Es?

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Definitions:

Second Law of Thermodynamics

A fundamental principle stating that the total entropy of an isolated system can never decrease over time, and processes that increase entropy are naturally spontaneous.

Living Systems

Organisms or groups of organisms that interact with their environment and function together as a unit of life including processes like growth, reproduction, and response to stimuli.

Chaotic Structures

Patterns or systems that exhibit unpredictable and irregular behavior despite certain rules.

High-Throughput Economies

Economies characterized by the rapid production and high volume of goods, often enabled by advancements in technology and manufacturing processes.