Money and Finance
From Security Analysis:
- Phil Fisher On Financing Growth
From Common Stocks and Uncommon Profits: Therefore, if investment is limited to outstanding situations, what really matters is whether the company's cash plus further borrowing ability is sufficient to take care of the capital needed to exploit the...
- Graham And Dodd On Private Owner Valuation
From Security Analysis:The other application of the principle of investing in undervalued common stocks is directed at individual issues, which upon analysis appear to be worth substantially more than they are selling for. It is rare that a common stock...
- Hussman Weekly Market Comment: The Coming Retreat In Corporate Earnings
We should begin with an observation. If one examines the historical data, there is a very weak relationship between year-to-year changes in earnings and year-to-year changes in the stock market. This lack of relationship partly reflects the...
- Whitman, Diz Quotes
From the book Modern Security Analysis: Understanding Wall Street Fundamentals (which you can also view, though not download for free, HERE):The analyst relying on earnings to evaluate a business or a common stock will be helped if he has some appreciation...
- Bruce Greenwald On Value Investing
What's the current environment like for a value guy?- I'll tell you the one really nice reason to be a value investor: When things like this happen, you cannot help but go nuts at the opportunity. What this looks like is the end of 1974, where...
Money and Finance
Graham and Dodd quote
From Security Analysis:
Current Earnings Should Not Be the Primary Basis of Appraisal. The market level of common stocks is governed more by their current earnings than by their long-term average. This fact accounts in good part for the wide fluctuations in common-stock prices, which largely (though by no means invariably) parallel the changes in their earnings between good years and bad. Obviously the stock market is quite irrational in thus varying its valuation of a company proportionately with the temporary changes in its reported profits. A private business might easily earn twice as much in a boom year as in poor times, but its owner would never think of correspondingly marking up or down the value of his capital investment.
This is one of the most important lines of cleavage between Wall Street practice and the canons of ordinary business. Because the speculative public is clearly wrong in its attitude on this point, it would seem that its errors should afford profitable opportunities to the more logically minded to buy common stocks at the low prices occasioned by temporarily reduced earnings and to sell them at inflated levels created by abnormal prosperity.
- Phil Fisher On Financing Growth
From Common Stocks and Uncommon Profits: Therefore, if investment is limited to outstanding situations, what really matters is whether the company's cash plus further borrowing ability is sufficient to take care of the capital needed to exploit the...
- Graham And Dodd On Private Owner Valuation
From Security Analysis:The other application of the principle of investing in undervalued common stocks is directed at individual issues, which upon analysis appear to be worth substantially more than they are selling for. It is rare that a common stock...
- Hussman Weekly Market Comment: The Coming Retreat In Corporate Earnings
We should begin with an observation. If one examines the historical data, there is a very weak relationship between year-to-year changes in earnings and year-to-year changes in the stock market. This lack of relationship partly reflects the...
- Whitman, Diz Quotes
From the book Modern Security Analysis: Understanding Wall Street Fundamentals (which you can also view, though not download for free, HERE):The analyst relying on earnings to evaluate a business or a common stock will be helped if he has some appreciation...
- Bruce Greenwald On Value Investing
What's the current environment like for a value guy?- I'll tell you the one really nice reason to be a value investor: When things like this happen, you cannot help but go nuts at the opportunity. What this looks like is the end of 1974, where...