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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (33391)	1/31/2009 1:58:08 AM
From: Paul Senior	1 Recommendation Read Replies (1) \| Respond to of 78763

PG. I had checked those long-ago 1980's PG prices too. It was when I bought my house. Turns out, if I would have bought all P&G at my house price back then, instead of my house, I would have been 5x better off. (PG going from about $2.45 to current $54.50). My house appreciating maybe 5x. And additionally, I'd be getting $1.60 share dividend on each $2.45 cost-basis share now. (Okay maybe 5x better number not quite right because I put 20% down on my house, and so I'd not be able to buy as many shares as my house cost with margin on stocks being maybe 50%. Plus, I'd have to pay rent someplace. Still though, PG proved a better financial investment than my house, it seems to me.) Who knew that PG would be a great long-term investment? (Well, great by my standards). Actually, we who were there maybe all knew. Motivated by inexperience and short-term considerations though, who cared? -- relatively high p/e, lousy div yield, stodgy non-hip investment. Maybe a good place to work (if you were in brand management especially), but tech/medical/other stuff -- that's where the money was to be made in the stock market. I have the same opinion today regarding PG: A great long-term investment. And I believe the young guys have the same belief now that I had then -- p/e too high, good company, not exiting, no ruling reason to buy, there's got to be better out there for somebody trying to make big money with not-a-big bankroll. Ltb&h people now may get rich on this stock as the 1980's ltb&h people may have done. It's a company with moats, so I bet your statement is right: "I bet it will trade higher twenty years from now." I'm guessing the issue is whether I'll be around 20 years to see it. -g-