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Strategies & Market Trends : John Pitera's Market Laboratory

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To: onurbius who wrote (2423)6/25/2000 11:49:00 PM
From: Joan Osland Graffius  Read Replies (1) of 33421
 
onurbius,

I am a rational person when I use the word fair value. For example GE is overpriced at a PE of 44, but I would expect to pay over a PE of 13 (historical average) for the stock since it is a consistent performer. But if you look at history you could have bought GE at a PE of 13 or less during recessions and bear markets. I know because I am a retired manager from GE.

I like to buy good companies cheap and look for those that are trading at a discount to what I think they are worth.

Joan
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