225. September 2026 Mailbag

Hosts argue paying the right valuation matters more than growth rate itself, illustrated through TJX's discounted P/E versus ResMed's history of 45-90x earnings multiples.

• Averaging up framework: David Gardner's Rule Breaker approach argues doubling down on proven winners (not losers) works because a stock's rise after purchase signals a validated business, not a reason to avoid buying more.
• TJX bought at low-mid 20s P/E: Jason bought TJX after comps growth slowed to 3-4% and foot traffic went flat (vs. -3% for the apparel sector), arguing its scale, buyback capacity, and merchandise-sourcing advantage support double-digit EPS growth despite mid-single-digit revenue growth.

Themes, sentiment and reasons are AI-written paraphrases, checked so they never quote an episode. They may contain errors. Not investment advice. Episodes remain the property of their creators.