Cisco as a Weighing Machine Example

13 days ago

Speaker

"My favorite example in the world, and I\"ve loved this one for so long. Cisco system. Cisco was the Nvidia of 2000. It hit a high of $82 a share back in 2000 and has not hit that mark since. Guys, guess what? Revenue is up 4x and profits up 5x since that time. And here\"s what\"s interesting: from one point to another, the stock went up 10x and profit climbed about 10x. Is that coincidence? No."

The speaker uses Cisco as an illustration of how stock prices, over the long term, reflect fundamental value rather than short-term hype. Despite not reaching its previous high, Cisco\"s significant revenue and profit growth reaffirm its long-term value, supporting the idea that fundamentals eventually prevail over market noise.

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