Fundamentals Are Strong, page-235

You should start a fund investing in shares based on their historic earnings . You could load up on Rio Tinto 140, MND at 15 , Telstra at 9.
Let me simplify it for you as you seemed so obsessed with the past .
I own a small farm specialising in sheep , worth 4 m it's profitable but trades on a PE of 25 . I find this much bigger farm ( cattle , goats and cropping ) that is generating significant cash flow , PE of 12 . I decide to buy it by bringing in some equity partners and we buy it for 10m. The nature of my combined farms is now a cattle and sheep , goat farm and also does cropping . I put my farm on the market in 2 years time . Will the new buyer focus on what my farm was earning when it was small 4 years , or what it generates today as s bigger and more diversified business
You see I didn't buy MYX when it was trading on a PE of 20 or 25, , I didn't buy it at 2 dollars. I bought it post Teva acquisition and have effectively bought the Teva portfolio,its cash flow and all the other parts of the business for 40% cheaper than the instos did in the placement, so I couldn't give a toss how robust or not MYX was on 2010 0r 2013 or 2015. I care about the business in 2017 and looking forward and all the financial metrics based on a entry price of 1.04 sp.