thanks, Bruce,
I think you'll be happy you have some cash to use, in this market pothole between Fed meetings. I bought some WCOM below 40, and MSFT below 65, today. Down to about 50% cash.
I've read the book, and am re-reading sections as they are referred to on this thread. One by one, I am slowly going through your list of real and potential gorillas, and adding some to my buy-list. I think, from what I've read, that this thread will be useful in constructing the list, but not useful in deciding buy-in prices.
I agree, on different metrics for different industries. Within an industry, I think you can use a standard yardstick. I use:
trailing 12-month PE for mobile home builders and medical equipment companies
forward 12-month PE for mature non-cyclical techs (MSFT, CSCO)
P/S, for AMAT (tech cyclical)
P/S, for small rapidly growing companies with a track record
Dice, for small rapidly growing companies without a track record, trying to do something that's never been done before. Dice aren't as good as the other metrics. |
