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Strategies & Market Trends : Value Investing

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E_K_S
To: E_K_S who wrote (58925)1/15/2017 3:59:33 PM
From: Paul Senior1 Recommendation   of 78659
 
MCO. I also have a had a hard time determining fair value, and have not been able to come up with a fair-value number. Stock seems expensive to me. Otoh, there are some contributing factors that make the stock a possible buy at current price:

MCO generally sells at a high price (p/e). The Buffett/surrogate purchase kind of indicates (to me) that it's a stock where price is what you pay and value is what you get, and these pro's are seeing value. You get a company with rising revenue, decreasing outstanding shares, increasing dividends. A company, where if you look out ten years, you might expect it and competitor S&P to still be around and still dominating the segment -- a business of rating financial instruments that will still be in demand.

Unless there's a market decline, I don't see where or why the stock will decline much. I don't see where it'll rise much either. With my small purchase I believe I might have an opportunity to trade for a small gain if the stock rises a bit, or just sit on the stock and see what happens a couple years from now.
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