JJC:
I agreed that you want buy good(or bad) company only at reasonable price, but there are two things need to be considered more:
1. book value.
some stock considered have "value" if below book value, but watch out, as these book value could be some unsold inventory and it could worth 0.
2. another thing you mentioned that if one stock has zero down side risk, you will buy it without thinking about the upside potential. well, in this case, you are more like buy CD or bond, or things of that nature, then why bother with stock. i think very few stocks has zero(or very little) down side risk. the nature of stock is the volatility.
by the way, COKE down from 88 to 62 now. so you and me, or every one in the street, has down better then buffet.
DJ |
