>>>>>I really think we are talking about different things.<<<<<
Wouldn't be the first time.<g> I am sure, however, that you don't want me to just agree with you.<vbg> Here are a couple of things you seem to leave out of the equation (maybe not?):
With respect to Benjamin Graham, I don't own a copy, I got it from the library, so I am working on memory here, but there is a chart or table in his investment guide, which demonstrates that he would accept higher P/E multiples if interest rates were low.
Also, as I posted to PaperChase, there are two remedies for high P/E, lower P or raise E. If a company is increasing earnings, a higher P/E is acceptable.
I don't know what Lucent is "worth." I only know I bought it October 5, 1998 for $59 11/16, and I think it was even cheaper on October 8. It is now selling at almost $96. I know Dell went down to around $40, and is now about $66, and has been up to $70.
I don't know what you consider an acceptable rate of return, but that felt pretty good to me.
I don't know what the future holds. That is why I hang out Mike's thread, because there are so many smart people who have so many good ideas, present company included.<g> Also, I am going to try options, so I am learning a lot by listening to you guys. Thanks.
CobaltBlue |
