Actual investors look to the future. Not the past:
Assuming that companies’ past performance will continue takes no account of how the world is changing.
As ‘the future’ will be unrecognisably different from the present, it’s better to invest in a business because of what it can become, not because of how profitable it is now. Many investors avoid yet-to-be profitable companies for fear of looking stupid if they never generate free cash. We care more about how a company might make money in the future.
