For sure. I guess it earnt the lofty valuation through continued...

For sure. I guess it earnt the lofty valuation through continued double digit growth.

One aspect to remember, is that if we put aside the hysteria surrounding weight loss drugs and if you look at Resmed's result, they seemed to fail on a contracting gross margin across 4 quarters and didn't meet expectations in terms of EPS. When you look at every other metric, they still maintained double digit growth. In fact, correct me if I'm wrong, they still delivered double digit EPS growth, but not in line with consensus. Happy to be corrected on that.




"I think it's a bargain compared to it's valuation not long ago but I feel it's valuation not long ago put this company on a pedestal that I'm not sure any company in the world deserves to be"

Maybe you're right. But you're talking past tense. I see that we both hold DDR. You could've applied the same logic to DDR when it was trading at a P/E in the 40's. Crazy stuff! Who would be so dumb to buy it then? Who the hell bought Dominos at $160?. Who was buying ZIP at $10? Who in their right mind was buying APX at $40? Similarly, who was selling WTC at $30? Who was selling PME at $39? Who was selling ALU at $26 due to valuation. The list goes on. So if RMD was expensive back then, is it cheap now? Or should the appropriate valuation fall somewhere in between $33-$23?

I'm a strong believer in reversion to the mean. The pullbacks that we've seen in many companies I believe, is exactly that.

I see your points and an investment in RMD isn't for everyone. You've highlighted the measily spot dividend yield. That's for each and every investor to weigh up when they purchase a parcel of risk. Bit of a bounce today, but I wouldn't be taking much comfort in that. In time, this will sort itself out. Someone's going to be right and someone's going to be wrong. Who will take home the Greater Fool Cup?

Stay tuned...