Teh Hooi Ling is one of the few decent financial writers around. I suppose, in this article, she is trying to write the article in layman terms so that most readers can understand.
In fact, buying low PE stocks has a good correlation to buying companies with high FCF. If the basket of selected low PE stocks is big enough, most of the stocks will probably satisfy low P/FCF requirements.
I do agree with her that, everything else equals, low PE stocks will give a good return in the long term.
In fact, buying low PE stocks has a good correlation to buying companies with high FCF. If the basket of selected low PE stocks is big enough, most of the stocks will probably satisfy low P/FCF requirements.
I do agree with her that, everything else equals, low PE stocks will give a good return in the long term.