Money and Finance
- Buffett’s Favorite Valuation Metric Surges Over The 100% Level
Thanks to Bill for passing this along. For the first time since the recovery began, Warren Buffett’s favorite valuation metric has breached the 100% level. That, of course, is the Wilshire 5,000 total market cap index relative to GNP. See...
- Oilprice.com’s Interview With Mike “mish” Shedlock
Link to: Oilprice.com’s interview with Mike “Mish” Shedlock *** I don’t necessarily agree with everything he says, but this is an interesting interview. If you substitute ‘undervalued stocks’ in place of ‘gold’ in his recommendation of...
- Joel Greenblatt Quote (roc And Value Traps)
“One of the reasons why looking at return on capital is important is that it keeps you out of the value traps.” –Joel Greenblatt (as quoted in the book Hedge Fund Market Wizards) ...
- Joel Greenblatt Quote (knowing What You Don't Know)
“My students sometimes ask, “What do you do for a company that is in a competitive industry, or technology is causing major changes, or new products are coming out, or some other circumstance makes it very difficult to estimate what future earnings...
- Joel Greenblatt Quote (valuation)
“…generally, if you have done good valuation work, 98 percent of the time, two or three years is enough time for the market to agree with you. That is a very powerful concept. It gives you patience. Of course, if you do poor valuation work, you can...
Money and Finance
Market Cap / GNP chart
A great chart from Wes Gray showing that "Warren Buffett's Favorite Valuation Metric" has reached the 95th percentile of valuation.
Link
At the end of his blog post, Gray writes:
"But what are the alternatives? 2.5% 10-year treasuries?"
To which I think the best reply is a quote from Joel Greenblatt (from the book Hedge Fund Market Wizards):
“Another important point I try to teach my students is that you have to consider not only what your opportunity set is right now, but also what opportunities you may be forgoing later by investing now. If your opportunity set is not that great right now, maybe you should wait another 6 to 12 months before becoming fully invested.”
- Buffett’s Favorite Valuation Metric Surges Over The 100% Level
Thanks to Bill for passing this along. For the first time since the recovery began, Warren Buffett’s favorite valuation metric has breached the 100% level. That, of course, is the Wilshire 5,000 total market cap index relative to GNP. See...
- Oilprice.com’s Interview With Mike “mish” Shedlock
Link to: Oilprice.com’s interview with Mike “Mish” Shedlock *** I don’t necessarily agree with everything he says, but this is an interesting interview. If you substitute ‘undervalued stocks’ in place of ‘gold’ in his recommendation of...
- Joel Greenblatt Quote (roc And Value Traps)
“One of the reasons why looking at return on capital is important is that it keeps you out of the value traps.” –Joel Greenblatt (as quoted in the book Hedge Fund Market Wizards) ...
- Joel Greenblatt Quote (knowing What You Don't Know)
“My students sometimes ask, “What do you do for a company that is in a competitive industry, or technology is causing major changes, or new products are coming out, or some other circumstance makes it very difficult to estimate what future earnings...
- Joel Greenblatt Quote (valuation)
“…generally, if you have done good valuation work, 98 percent of the time, two or three years is enough time for the market to agree with you. That is a very powerful concept. It gives you patience. Of course, if you do poor valuation work, you can...