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

To: Jurgis Bekepuris who wrote (46197)	1/16/2012 12:55:04 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78686

Re European stocks - that blog post is actually a pretty good summary of European stocks. Like GBL as well but of course it has been trading at. A holding company discount forever. Ahe Graham Dodd formula that is used to value stocks penalizes high ROE business and that is one reason why this formula is flawed. with respect to VW the authors misses that the gearing comes from VW's vehicle financing business, which sort of is like a low risk banking operation attached to the car manufacturing core operation. In that light, complaining about the gearing in my opinion does not make any sense. I agree with the author to avoid banks,but I think insurance companies are worth a look ( Allianz and others).