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

To: E_K_S who wrote (1982)	7/21/2012 10:20:50 PM
From: Sergio H	Read Replies (1) \| Respond to of 4719

When I initiated my participation in this project, I did not think we would try to beat Buffett using Buffett's own rules, but make up our own strategy. I know this is difficult because if its not Buffett or Graham or another famous value player methodology, is it actually a value play? There is no answer to this question, because value really means something different to everyone as Bruwin pointed out. I don't do scans. Nor do I use the Graham number and I don't have a particular metric formula. Where I see value is first does the co. have a moat that prevents others from diluting their market share? Not an original idea. Is this likely to continue? Is the stock selling at reasonable ratios? And are there any catalysts for kickers? And then is the risk vs reward ratio worthwhile? Then I look at the chart to see what everybody else thinks about the stock and I have my own rules for entry point based on the chart. But, I am not Warren Buffett. I have not looked at TRN or GBX yet. Looking at CSX. and if we're going with Buffett's rules to beat Buffett, we need a railroad stock, and there's a few things I wanted to add to your post. CSX has a low payout ratio on their div. They recently beat earnings estimates although revs were short. Going forward the co. forecast double digit growth. CSX has inflation built into 30% of their contracts to reduce the risk of economic factors. They gain with opposite events occuring in a number of ways providing safety to the investor. Good article on the railroads: beta.fool.com