Money and Finance
From Brandes on Value:
- Berkshire's Book Value And Share Repurchases
At the end of Q3, Berkshire Hathaway’s book value stood at $111,718 per Class A equivalent share, or $74.48 per B share. Remember that Mr. Buffett can buy back stock at 110% of book value, a price he believes significantly undervalues Berkshire. So...
- Short Term Price Movements Are Not Indicative Of Value
In late February I posted a stock analysis over at Seeking Alpha where my conclusion was to wait for lower prices. The company was undervalued on a relative basis against its competitors but it seemed a bit overvalued on its' own merits based on...
- Option Strategy
I have 2 option strategies that I like the most and then a third that I don't have enough positions built up to think about at the time. 1. I like selling put options since you can essentially set your entry price and get paid a premium to wait for...
- Recent Buy
I decided to open my Roth IRA with Fidelity just to keep everything together for now. And the first purchase I made was for 25 shares of Wells Fargo (WFC). At the current dividend payout of $0.48 / yr and my purchase price of $25 / share my YOC is 1.90%....
- What To Do When Your Stock Plunges
Invest long enough and one morning you'll open your browser to check your stocks only to find that one of them is down 20% or more in pre-market trading. Fortunately, this sinking feeling doesn't happen often, but shareholders in a number of popular...
Money and Finance
Discounts are the building blocks of value...
From Brandes on Value:
Often, it takes a great deal of conviction to stick to value investment disciplines, especially when a company’s stock price declines while you own it. For those who focus only on price, share price declines can be devastating emotionally. Even worse, they can lead to bad decisions, such as selling out just because the price is down. Some market participants focus only on how much money they are losing in the short term. However, for long-term investors who evaluate share price in relation to business value, price declines can represent a tremendous opportunity in the form of discounts. Discounts are the building blocks of value.
- Berkshire's Book Value And Share Repurchases
At the end of Q3, Berkshire Hathaway’s book value stood at $111,718 per Class A equivalent share, or $74.48 per B share. Remember that Mr. Buffett can buy back stock at 110% of book value, a price he believes significantly undervalues Berkshire. So...
- Short Term Price Movements Are Not Indicative Of Value
In late February I posted a stock analysis over at Seeking Alpha where my conclusion was to wait for lower prices. The company was undervalued on a relative basis against its competitors but it seemed a bit overvalued on its' own merits based on...
- Option Strategy
I have 2 option strategies that I like the most and then a third that I don't have enough positions built up to think about at the time. 1. I like selling put options since you can essentially set your entry price and get paid a premium to wait for...
- Recent Buy
I decided to open my Roth IRA with Fidelity just to keep everything together for now. And the first purchase I made was for 25 shares of Wells Fargo (WFC). At the current dividend payout of $0.48 / yr and my purchase price of $25 / share my YOC is 1.90%....
- What To Do When Your Stock Plunges
Invest long enough and one morning you'll open your browser to check your stocks only to find that one of them is down 20% or more in pre-market trading. Fortunately, this sinking feeling doesn't happen often, but shareholders in a number of popular...