Wayne Crimi: re: "I thought this thread had a duel purpose". Well, about now I sure feel that way -gg-. LOL! But perhaps you meant 'dual' purpose. That(dual purpose), as I read the thread header, I am not sure about. But regardless of what I think, this thread gets a lot of useful input from a lot of people about the philosophy and ideas of value investing and other investing ideas.
Also to clarify some English further, the person who posts to himself/herself after me and accuses 'people' here of trying to 'censor' people --- please don't think that I am trying to censor you. You say whatever you darn well want. I am not trying to censor you. But I am trying to censure you. (def: adverse criticism). I think your way of investing is dead wrong. That would be my opinion of course. On the other hand, I am not at all saying I have the only way or even the right way. Or even that I can use the way I have successfully.
I am basically and essentially looking for proven methods that work -- Where there is some academic or historical support. On this, the Ben Graham value thread, it's entirely reasonable to assume that I and others would be trying to use Ben Graham's methods to the extent I/we understand them and that they apply to today's world. Thus, IMO there are two recommended methods for valuing stocks (per B. Graham, FAJ, 1976): the first is the "more limited technique of purchasing common stocks at less than their working-capital value" and the second, which
"...consists of buying groups of stocks at less than their current or intrinsic value as indicated by one or more simple criteria. The criterion I (Ben Graham) prefer is seven times the reported earnings for the past 12 months. You can use others - such as a current dividend return above seven per cent or book value more than 120 per cent of price, etc. We are just finishing a performance study of these approaches over the past half-century - 1925-1975. They consistently show results of 15 per cent or better per annum, or twice the record of the DJIA for this long period. I have every confidence in the threefold merit of this general method based on (a)sound logic, (b) simplicity of application and (c) an excellent supporting record. At bottom it is a technique by which true investors can exploit the recurrent excessive optimism and excessive apprehension of the speculative public." |
