L
lemur
Guest
'Graham always bought at least 1/3 below the tangible nav'. - Such nonsense. Name companies that are selling for this which would be tantmount to free money.
Its amazing the absurd things people believe.
hi ringledman...
cigar butts and grahams approach works. The only problem over the last few decades is there hasnt been so many companies below tangible net asset value to buy. Graham always bought at least 1/3 below the tangible nav.
the trick was he bought enough of these stocks so was very well diversified..so even if a few went bust (which is going to happen) he still beat the market by miles.
Buffet and co of course now adapted grahams approach and buy below 'intrinsic value', and this is the approach i mostly use. Of course in the last year mr market has gotten very ill and is now giving companies away, in some cases at huge discounts to tangible nav.
That wont last too long though, once his medication kicks in. Its bargain time galore!
I have read a lot of mostly value investing related books over the last 2 years. I have learnt a heck of a lot. I have also made mistakes which i plan not to make again. Most of these were companies i bought before i read a lot of the value investing books.
The pyschology of the whole market fascinates me. The 'herd instinct' amongst the average investing public (including most fund managers) is unbelievable. I just do the total opposite. Ive trained myself to do this. Id also say the contrarian approach is also part of the way we are wired.
However much i cannot stand the media circus at the moment, they are doing long term value investors a great service. They are frightening the life out of people, causing them to sell their shares and so on.....bargain time!
lemur..lol
that just shows how little you know.
Is there an 'ignore' button on askaboutmoney.com??
LOL. Oh great. So name a company somebody can buy for say $66.6m and then sell the assets for $100m. Free money. If you believe this, you clearly know nothing about the market and its pricing mechanisms.
'Graham always bought at least 1/3 below the tangible nav'. - Such nonsense. Name companies that are selling for this which would be tantmount to free money.
Its amazing the absurd things people believe.
Lemur please let us know when you will be giving your talk about how the pros trade the market I want to know what stocks to avoid that people like you are promoting.
You sell yourself as some big hitter in the financial industry but you have yet to produce one convincing argument to back your position up unlike smiley.
11 Stocks Selling Below Cash'Graham always bought at least 1/3 below the tangible nav'. - Such nonsense. Name companies that are selling for this which would be tantmount to free money.
Its amazing the absurd things people believe.
11 Stocks Selling Below Cash
http://seekingalpha.com/article/103...-cash?source=front_page_most_popular_articles
AIB BOI mentioned!
tyoung..well done.
those companies you mentioned and lots of others crossed my mind.
the great thing about value investing is most speculators and investors wont believe you, or have a clue what you are talking about....which, is brilliant for us.
buying dollars for 50 cent or less is what value investing is all about. You either get this or you dont. Christoper Browne (tweedy browne) talks about this in his book- 'the little book of value investing'.
ringledman....emt..lol..its a total joke. Markets are efficient in the long term, but short term a total roller coaster ride!
I just see the stock market as a buying or selling mechanism for shares..thats all it is. Its got very little to do with company you own. Once you understand that, what happens in the stock market doesnt matter a flying monkeys. To be honest i have really only understood this in the last year or so.
Every time the stock market plummets now, i get very excited. Mamma mia....they are giving away some of the best businesses in the world at ridiculously low prices. I never thought this opportunity would exist.
By the way as an exercise..go to yahoo.com/finance and graph for example the sp500 or the dow for the last 70-80 years............whats the general trend? answer=up. Can you spot the market crash of e.g 1987? or even sept 11th? or 2000-2001?..........you might just make out a blip...but thats about it.
you would really wonder what the fuss is all about!
Current Forbes article on Ben Graham and buying stocks for less than net current assets.
http://www.forbes.com/home/forbes/2008/1110/056.html
And yet another article.
http://biz.thestar.com.my/news/story.asp?file=/2008/10/8/business/2211821&sec=business
lemur..i didnt mention book value...
you are talking nonsense and are showing your complete ignorance here.
in fact, get off this thread please. We are trying to have an educated debate here.
you are a messer...wind up merchant.
lemur..i didnt mention book value...
you are talking nonsense and are showing your complete ignorance here.
in fact, get off this thread please. We are trying to have an educated debate here.
you are a messer...wind up merchant.
A deeper dig into the numbers on that table will open a can of accounting worms in all of those cheap stock price companies. Healthy growing companies all have premiums built into their stock price.
Not saying I don't believe you but if you're going to say something like that you need to give examples of the studies and list the assumptions made in the studies because every study will make assumptions. I'm sure there are studies to show the opposite result too.And yet studies have repeatedly shown that buying stocks at very low P/Bs greatly outperforms.
Not saying I don't believe you but if you're going to say something like that you need to give examples of the studies and list the assumptions made in the studies because every study will make assumptions. I'm sure there are studies to show the opposite result too.
There are many more if the below doesn't suffice.
Don't believe half of what you see and none of what you hear.
Growth stocks are the way to make money in the equities market. With all due respect the value investing argument is the way brokers off load stocks that nobody wants to the gullible public. O'Neill's books and many other studies have illustrated this.