Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (8872)	11/3/1999 5:29:00 PM
From: Investor2	Respond to of 78622

Any thoughts on PBY at this low level? Best wishes, I2

To: James Clarke who wrote (8872)	11/3/1999 5:38:00 PM
From: Daniel Chisholm	Read Replies (3) \| Respond to of 78622

I am not thinking of "growing into" its valuation. I think I probably overstressed that idea. A company with exceptionally good ROE deserves to have a premium paid for it today, and if it continues to have an exceptionally good ROE, it will continue to deserve a premium price. What I can't get a good analytical handle around is, how much of a premium should I rationally pay for an exceptionally high and sustainable ROE? I really haven't managed to get beyond "gut feel" on this (obvious: pay as little as you can, pay more for certainty, etc. Not so obvious: how much?). Methinks we're traipsing over into Buffett-Land though.... - Daniel