SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (6751)4/15/1999 9:45:00 AM
From: Ron Bower  Read Replies (1) of 78602
 
Paul,

If I understand you right, Value investing means investing in companies, not the market? That you are satisfied if you've been able to buy into a company at a low price to it's value and that company provides a good return (PE) on your investment, it matters little what the market does to the price?

If that's your point, then I agree. Value investing is long term investing based on company performance and the market price may not reflect this value - although eventually the value should be realized by the market if you've chosen wisely.

Yet value investing is frustrating. In the past I bought AMTD at $15.50 and sold at $29.00 - it's now over $150 (PE over 650). Bought SWS at $16.50 twice and sold above $27 - it's now over $50 (about 40PE, over 3XBV). I have a long list of companies I have owned and sold when they went above MY value standard. The market has pushed them to ridiculous numbers while I sat on a stagnant portfolio with positions below BV (some at cash) and an average PE around 5. I hang in there because I feel insulated from market corrections (can they go any lower?) and the companies I've invested in should provide me with a good return.

The only bright side is the smaller check I sent to the IRS.

FWIW,
Ron

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News