Saw this below comment response in a story in livewire markets.
Couldn't agree more. The stock is a global outlier in terms of valuation - unprecedented on an industrial scale. Also agree with the 'emperors' new clothes' reference. CBA is walking down the street totally naked and everyone is pretending not to notice.
The Super Bots keep assigning member contributions to low yielding bank stocks. Not really by choice, but because what else can you invest in that is reasonable in Australia? Our miners have an uncertain future, and our tech sector has a small earnings base, very high market caps, but your Wisetech Global, Pro Medicus, Xero all have PE ratios over 150. Pro Medicus has a PE ratio of 350 - and people think Nvidia is expensive at 50 times earnings
So when your mandated to buy Australian equities, what else can you do but buy 'aussie bank shares'. Then when we bid prices up to astronomical figures, we tell falsehoods like CBA is the best bank in the world. Why would an Australian bank that does 13% ROE be the best bank in the world? Paying $100k for a Honda Civic doesnt make it a Mercedes.
CBA walking naked down the street. Let's all pretend not to notice.
Is the Commonwealth Bank's share price surge the ultimate bubble signal? - Reece Birtles | Livewire
(20min delay)