NSRGY and DEO are IMHO too expensive. Not a buy for me.
Well that's a key point. If I were buying because they were undervalued and maybe to be sold when they would reach fair value-- or maybe only buying when they might be undervalued because only then would they provide a margin of safety I'd require, -- then I would likely not have ever bought them.
NSRGY mentioned several times here. I started accumulating in '03 with stock at $19, more in '04 at $24, '05 at $27, '08 at $35, '09 at $32-33, '11 at $55. ( Never reinvested the dividends.) Possibly at any of those times and purchases it was never a value buy.
I started buying DEO in early '09 when the stock dropped back to the price point at which Mr. Buffett apparently had given up on it. (His buys of '05, I guess. When he was reported to have been considering making an offer for the company. Perhaps he agreed with you that the company was/is too expensive.). In at $45, adds later at $61, a little more 8/11 at $74. Just a few shares overall as I imply. With DEO and also similar sector company PDRDY a few months ago, I made these buys on dips - ignoring that they might not have fallen low enough to be considered value plays. My intent here though was for them to be a ltb&h (ten years, min.). I am wondering if I can do that with Church&Dwight (CHD), a stock that may have started this conversation, a stock I'm stepping up for (for just a few shares) even though it's now near its all-time high. |
