I apologize that the p/e of csco dropped to 98.74 due to down draft last week. quote.yahoo.com
Coby, I am irritated, and in fact quite irritated. I have tried to be helpful in discussing options and other subjects.
30% growth has some ascertainable value. Not unlimited value. If you want to debate me on what that value is, that would be wonderful. But please do not tell me that I need to understand that growth investors have different parameters than I do, and then not debate what those parameters are and whether those parameters are reasonable. You do insult my intelligence when you offer no facts on your side other than to tell me I don't understand.
With regards to options hedging long positions, it isn't a matter of bragging. It is a matter of saying "remember that no one is saying go 200% short here". When Mary Cluney criticizes MB for missing the bull market, or Paul Engel comes in call MB "Bearke", they miss the point of what is going on here. Are you missing the point? I am not betting against the future. I am not oblivious to the wonderful company that CSCO is. I do realize they are growing at a high rate. I believe that many of the market darlings are overvalued. 30% growth rates merit 30 p/e's give or take. 40 or 50 as a p/e for CSCO might not bring on put buying by me. But I take the position that it is currently past reasonable. And I take that position as a small bet in a diversified portfolio of longs and shorts.
If you want to have an intelligent discussion, tell what your limit for csco is. What is a reasonable price? If you said well I think it is worth 120 because a, b, and c, that would be more productive than to tell me that I don't understand growth investing. All of us here understand there are different approaches to investing. |
