Money and Finance
This seemed relevant given what's going on with oil. From Lowenstein's Introduction to Part I of Security Analysis: Sixth Edition:
- Seth Klarman Quote
From Seth Klarman, via Margin of Safety:Because investing is as much an art as a science, investors need a margin of safety. A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human...
- More Funds Find Security In Cash
"There are only two hedges to protect you in any market environment: knowledge and cash," Mr. Berkowitz of Fairholme says. "It makes no sense to me to be fully invested."...Strong conviction in your investments, infrequent trading and a highly concentrated...
- Valuation Of Pepsico Inc. - The Long Case Looks Strong
Last week management of PepsiCo. Inc. (PEP) announced earnings for 4Q and full year 2013. The results were fairly mixed with revenue increasing around 1% over 2012. North American soda consumption continues to be a drag on the growth of the...
- Walmart Stock Analysis
I ran Walmart through my screening process and was pretty intrigued by the results. Walmart is currently trading at $59.76. DCF Valuation: Analysts expect Walmart to grow 9.10% per year for the next 5 years and I've assumed that after that they will...
- Jnj Stock Analysis
I've started to try and consolidate my stock analysis spreadsheets to make it easier for myself to cruch numbers. I like JNJ and would love to get in but right now it seems that it's a little overvalued and there's just too many question marks...
Money and Finance
Roger Lowenstein excerpt...
This seemed relevant given what's going on with oil. From Lowenstein's Introduction to Part I of Security Analysis: Sixth Edition:
The competition for such values is fiercer in the United States, but they can be found, especially, again, when some broader trend punishes an entire sector of the market. In 2001, for instance, energy stocks were cheap (as was the price of oil). Graham and Dodd would not have advised speculating on the price of oil—which is dependent on myriad uncertain factors from OPEC to the growth rate of China’s economy to the weather. But because the industry was depressed, drilling companies were selling for less than the value of their equipment. Ensco International was trading at less than $15 per share, while the replacement value of its rigs was estimated at $35. Patterson-UTI Energy owned some 350 rigs worth about $2.8 billion. Yet its stock was trading for only $1 billion. Investors were getting the assets at a huge discount. Though the subsequent oil price rise made these stocks home runs, the key point is that the investments weren’t dependent on the oil price. Graham and Dodd investors bought into these stocks with a substantial margin of safety.
- Seth Klarman Quote
From Seth Klarman, via Margin of Safety:Because investing is as much an art as a science, investors need a margin of safety. A margin of safety is achieved when securities are purchased at prices sufficiently below underlying value to allow for human...
- More Funds Find Security In Cash
"There are only two hedges to protect you in any market environment: knowledge and cash," Mr. Berkowitz of Fairholme says. "It makes no sense to me to be fully invested."...Strong conviction in your investments, infrequent trading and a highly concentrated...
- Valuation Of Pepsico Inc. - The Long Case Looks Strong
Last week management of PepsiCo. Inc. (PEP) announced earnings for 4Q and full year 2013. The results were fairly mixed with revenue increasing around 1% over 2012. North American soda consumption continues to be a drag on the growth of the...
- Walmart Stock Analysis
I ran Walmart through my screening process and was pretty intrigued by the results. Walmart is currently trading at $59.76. DCF Valuation: Analysts expect Walmart to grow 9.10% per year for the next 5 years and I've assumed that after that they will...
- Jnj Stock Analysis
I've started to try and consolidate my stock analysis spreadsheets to make it easier for myself to cruch numbers. I like JNJ and would love to get in but right now it seems that it's a little overvalued and there's just too many question marks...