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

To: MCsweet who wrote (48705)	7/11/2012 5:05:08 PM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78656

Benjamin Graham did buy stocks because they were at low multiples. He also required a consistent multi year history of profits and possibly dividends. His restrictions of companies to buy were quite strong. You are right that he would probably not endorse XIN. OT: I am starting to get concerned about Euro+China meltdown that might drag US into it. Maybe I should increase my cash holdings. Tough to do, since I have sold most of my low-confidence positions already...

To: MCsweet who wrote (48705)	7/11/2012 5:18:21 PM
From: NikhilJog	1 Recommendation Read Replies (2) \| Respond to of 78656

I am not disagreeing with you, however, times have changed and so certain other things. Maybe if he was alive today he might add to his methods, that buffett did. Its not a question about who is better, its a matter of looking at things from the right perspective. And just so you know, I have read his writing. But none of us know what he might do if he was alive today, so no point in talking about that. I do look at multiples, but even for value guys, multiples are not everything. Multiples in isolation are meaningless. I think you misunderstand catalyst as something for growth investors. All value investors from M Price, Klarman, Einhorn, Gabelli, so on and so forth, invest in firms with relatively low multiples in addition to catalysts. So i think the conversation that i should go to a growth blog bcs i look at firms with catalyst in addition to low multiples is moot. As for XIN - I don;t know if Graham will invest in it or not and honestly i don;t care. What i do care about is, what are the reasons to invest in it, why Paul invested ( i wanted to learn) and whats the risk/reward profile in taking the position. I always pick Paul's brain bcs i end up learning stuff from him. I hope that helps. I appreciate you writing back.