>> I have noticed that when we get into this discussion, your statements often seem to tie investors' concern for valuations to the general failure of market timing.
Guilty as charged, Huey, but my primary focus has always been on technology, talc, and cap. Those are the areas I feel strongest in based on my education and professional experiences. I am always interested in valuation models that might favorably impact the risk/reward ratio, but don't look for me to develop any.
>> But <Buffett> has at least one more extremely important investment criteria that Gorilla gaming and this thread fail to give its due---and that is to buy companies at a discount to their intrinsic value, to buy companies when their stock prices have a margin of safety. Does this last criteria make him a market timer?
No, because he doesn't try to sell at the peak. His approach is to locate entry points in great companies based on valuation, and then hold on for the long term, but keep in mind that his model doesn't include tech. My approach is to locate entry points in great companies based on the position of its products in the talc and then hang on for the long term. It plays to my skill set.
>> I just wish the thread leadership, rather than tending to dismiss valuation concerns, would acknowledge the extreme risk in buying a gorilla at any time at any price without regard to valuation.
Then your wish has come true, because you just did. This isn't a thread of sheep following a shepherd or people looking for a guru. It's an investing smorgas board where we can load our plates with insights dished out by any of our active contributors. You've been a long term participant, and as such are every bit as much of a thread leader as Merlin, Lindy Bill, Galahad, Apollo, Thucydidies, Plutus, Ares, Lyre, or Chartmeister. I'm pleased that you've expressed your interest in valuation, and hope that you continue to lead a discussion in that direction.
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