§ 01
JPM — P/B Ratio, Current Price. Open JPM on the Ledge to see current values.
§ 02
P/B = Stock Price / Book Value Per Share
§ 03
P/B below 1.0 means the stock trades for less than its net assets. Like buying a house for less than the value of its parts. Buffett looks for this.
§ 04
P/B is most useful for asset-heavy industries (banks, insurance, REITs). It is less useful for tech companies where value comes from intangibles like software and brand.
§ 05
Look up JPM (a bank) and check its **P/B ratio**. Then look up MSFT (a tech company). Notice the huge difference and consider why.
§ 06
§ 07
A regional bank trades at P/B 0.5x (50 cents on the dollar of book equity). Your instinct?
Five questions · AI feedback
Sit with the ideas.
A bank stock has P/B of 0.8x. What does this mean?
Why:
Try this in paper trading
Identify the moat. Then size the position.
Pick a company. Articulate its moat in one sentence: switching costs, network effects, intangibles, cost advantage, or efficient scale. Paper-buy a position size proportional to your confidence in that moat surviving 10 years.
Open paper portfolio →Practice mode — simulated trades, not investment advice.