Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jurgis Bekepuris who wrote (37117)	3/28/2010 6:40:01 PM
From: blastedwand	Read Replies (1) of 78748

to be fair sometimes there is not more to contrarian investing. When the dow is at 6500 and everyone is in a panic I asked myself one question: "is the world ending?" if the answer is yes than doesn't matter what you invest in. if the answer is no than you go to work. you look at companies or sectors that have been unfairly beaten down. Take insurance for one. Just because AIG was asleep at the wheel did it mean all other insurance companies were also? How could you compare AFLAC and LNC to AIG? I do not think you could yet they were getting crushed. Now I looked over the 10k's and read what I could but I was not going to kill myself trying to understand every little thing. What I was trying to understand was if it was an over reaction. It was in the case of LNC and it was in the case of AFLAC. Then there was GNW. I didn't want to jump in right away because of the direct exposure to mortgages. If I did I would have owned it at $1. I waited for a few quarters and listened to the calls. I read through the note and the financial stuff I could understand. When I decided I felt it was out of the woods I invested and bought 10k at 6.27. With BAC I did a similar thing. There is no way anyone of us can understand there filings or all the junk they load up the reports with. Plus as we know when they want to hide the crap they can and they will. The only question was are they going under. If you thought no then you ask the second question. With the pickup of countrywide and ML what could be the sum of all the parts. Even of you think they were all 50% over valued at the "TOP" the sum is still over $50 a share. So that is when I started buying and now sit on 20,000 shares. C was a slightly different situation. Once it got bailed out everyone looked at it as a bad thing. I looked at it as a good thing. I now knew it was not going under and took a position. You are correct I do not know what it is "worth" but I do know that it is not worth $4 or even $5 or $6. I know in time the government will be out of both banks, they will buy back stock and they will once again pay a dividend. Value investing is many things. There are plenty of stocks in my portfolio that I have researched in much more detail to come up with the reasons to invest. These I decided not to over think up front. There will be a time to sit down and research when they reach a price that I decide based on many factors is too high like I am now concerned with in GNW. In any event that my two cents. I do not view my position at "subbornly opposing majority". frankly I didn't care what anyone thought when I took my positions......

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next