Netflix is throwing off $12 billion a year in cash and growing that figure 15–20% annually, so the argument is that if the stock pulls back to a reasonable price, it becomes the kind of business that quietly compounds your money for years.
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Sven Carlin is bearish on US stocks broadly because they're priced at nearly their most expensive level in history — rivaling the dot-com bubble — meaning investors buying today are getting roughly half the earnings return they'd normally expect, which GMO's analysis suggests will translate into genuinely negative real returns over the long run.
The thesis is that buying international stocks trading at genuinely cheap prices — through EFV — makes more sense than paying up for expensive US stocks right now, because historically during high-inflation periods like the 1970s, deeply discounted stocks held up and outperformed far better than the broader market.