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: Paul Senior who wrote (27859)	8/22/2007 6:20:35 PM
From: E_K_S	Read Replies (2) \| Respond to of 78748

Do you still like CSG below $40? It seems to be priced similar to KO based on their forward PE but KO delivers a higher dividend. finance.yahoo.com Buffet's largest holding is still KO. Berkshire Hathaway holdings: holdings.nasdaq.com Notice Buffet added BAC to his holdings as a 'New" addition. I do recall the discussion about Bill Miller and found it quite interesting. I guess I error on holding some positions too long and do agree with you that three years should be plenty of time for both the company and/or industry to turn around. Interesting note on Graham's general holding period for cigar butt positions. Do you know if he found it profitable to ever establish new full positions from his cigar butts? I find that I continue to have pretty good knowledge about these companies and their operations. I tend to sell them too early in their recovery. HAL is one that comes to mind. I am currently reviewing my portfolio for tax loss selling candidates as I like to complete these transactions during Sept. & Oct. which is early. I like to load up on new positions (or additions) when everybody else is tax loss selling in December. EKS

To: Paul Senior who wrote (27859)	8/22/2007 10:28:03 PM
From: Madharry	Read Replies (1) \| Respond to of 78748

speaking of rising azecf up to $34.92 in japan now. I added a few more shares when it seemed like at a bargain compared to wynn. Based on my calculations i have it as a strong buy up to $37. But its a big enough position in my portfolio that im not adding more here.

To: Paul Senior who wrote (27859)	8/22/2007 10:45:28 PM
From: James Clarke	Read Replies (6) \| Respond to of 78748

Theres a lot of wisdom in that post Paul. Most wise is that there are no rules, only judgement based on the situation at hand. I've averaged down in stocks though that is not my style - my good ones I usually nail a bottom and average up from there, though I've had a couple I averaged down into which made a year for me. No rules, though I do have a few I try to adhere to. One thing I'll point out just from my experience and the kind of stocks I buy. I will ONLY average down if I'm sure of the balance sheet. Thats why something like a Countrywide is so uncomfortable for me to get into in the first place - I missed the 75% move in a week - simply amazing for a market cap that size, but I also didn't take the pain on the way down. If you bought CFC at the bottom my hats off to you. I was looking at it at the bottom too, but I also rejected it at 35, 32, 29, 24 and 18 so I'm not beating myself up over that miss. I can't remember an average down where I lost a lot of money (though I'm sure there were a couple over the years that I erased from my memory because they were so painful). Thats because of the kind of stock I'll average down in. I used to have a rule for years that i've kind of loosened up on that you get one average down after taking a full position and then thats it. That instills a sort of discipline in that it makes you wait for an even better price and also keeps you from fixating on a loser and adding to it all the way down then finding out you were wrong. The exception are the ones where you anticipate averaging down on a "falling knife" and lay out a plan to buy 1% at 18, another 1% at 17, and fill the position at 16. In that case if the stock went through 16 I've got one more swing and I'm going to make it meaningful but its not going to be 15 1/2 - I'm going to wait for 12 and then I might double the position. And then that is it. After that the strategy is pray hard! We all have ways of building our position based on our own psychology and the kind of things we buy. Those are a few of my ways of looking at what Paul was discussing. Retailers have gotten annihilated folks, whats your favorite? I'll put up BGP, though it is not one that looks cheap at first glance. Thats one I've been averaging down into since 19. And don't tell me don't buy retailers - they've gotten killed. Tell me six months ago don't buy retailers...now THAT would have saved me some money! Borders Group let me just say i'm working through a tattered copy of War and Peace I bought 21 years ago when I was in high school - this is my third read of it - the first in almost 20 years - and you know what the hundreds of hours of intellectual stimulation I got out of this book cost me? $5.95. Gotta love books. Thats not why I own Borders but just putting in a plug for Tolstoy.