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: IndependentValue who wrote (52006)	8/6/2013 4:38:36 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78600

I just read what Spekulatius posts and then buy it. :)))))))) Seriously though, it depends on your investment style, available cash, etc. Most of my ideas come from SI. Barron's might be good source for ideas when stocks are cheap, but not right now: they are fishing in the same pond, so their picks are mostly "it was much cheaper 4 months ago, we'll still call it cheap, since others are even more expensive and we need to publish the paper". You might find one or two decent ideas through couple of issues. I don't use screens. If I used one, I'd use FT's global screener and would look at Magic Formula list. International looks better than US right now in terms of available values. US is mostly fairly valued to overvalued. Regarding values in US, you can still find some, but mostly they will be controversial, i.e. there will be both bull cases and bear cases. Magic Formula stocks are mostly controversial, since the formula tries to select businesses that have great income, but low prices. Most of the time such combination means controversy. Some people think that in-depth dd helps to decide whether to go for bull case or not. IMHO, this depends on investor. A lot of time we simply don't know and the choice is crapshoot. Alternatively, buy great businesses at somewhat-expensive prices and hope that the greatness of the business will compound results well enough to overcome rather expensive price. I can't advise on Graham'y net-net / cigar butt values. I was never successful in buying these and I don't know how to find good ones in that area. I'll agree with Buffett/Munger though: read everything. :) Although there should be some method to the madness of reading everything... but you might have to discover it yourself. Some things that I read make sense to me, but not to others and vice versa. ;)

To: IndependentValue who wrote (52006)	8/6/2013 7:11:23 PM
From: Paul Senior	1 Recommendation Recommended By sjemmeri Read Replies (1) \| Respond to of 78600

I use screens to seek new stocks. I use screens provided by various brokers with whom I have accounts. I use AAII screens. For dividend/dividend growth screens I follow what's sometimes posted on the Steve Felix, "Dividend Investing for Retirement" thread. I often peruse the new lows lists that various news sources provide. Once in a while I'll check out Finviz.com. I also will look at sites that give insider trading, and trading by alleged value gurus. Occasionally I'll bet on the jockey who's recommending the stock. (That would include betting on some of the people who post here.) Sometimes general reading helps. Either in developing a theme or in describing a stock that might be of interest. I read Barron's, Forbes, Kiplinger, and couple others from my local library. Plus the daily newspaper occasionally. As I say, I'm basically a person who uses simple metrics and formulas and techniques to identify and and buy what I consider "value" stocks. I like to incorporate roe, growth in book value, margins, p/e, d/e.

To: IndependentValue who wrote (52006)	8/6/2013 10:09:47 PM
From: Spekulatius	Respond to of 78600

I don't use screens much but I use the magicformula screen every once in a while. I also look yahoo/finance industry groups a bit. Posts and recommendation from other investors servemostly as an idea lead. Sometimes I buy the recommended stock directly, but often I find other stocks in the same industry that I like better and buying those. I follow some blogs like Longtermvalue, Whopper Investments, Oddballstocks and OTC adventures and Brooklyninvestor for idea leads: longtermvalue.wordpress.com I have large yahoo portfolios sorted by industries that I keep and go through from time to time to look for value stocks. I do read Seekingalpha and Gurufocus fairly regularly. I also subscribe to Barrons but regard it more as entertainment. Lately, I got some good ideas from valueinvestorsclub. I follow European news sources and german message boards as well.

To: IndependentValue who wrote (52006)	8/7/2013 11:39:00 AM
From: deeno	1 Recommendation Recommended By Bordeauxman Read Replies (1) \| Respond to of 78600

Both screening and reading are pieces of the puzzle not the puzzle. Screening allows you to come up with a list of suspects that have attributes you are currently looking for. Reading news gives you ideas on trends, recent events and either reinforce your current thinking or present reasons why current thinking may be in error. they both have downsides. Screening may ignore current events and changing circumstances and any thing you read is likely already been reflected in stock prices as well as odds of future known events being discounted. for every 20 suspects I come up with (which come from many sources including screening and reading) I'm lucky to find one thats worth putting actual dollars into. So I would say that using either as primary tool for investment decisions would produce a tunnel vision type of portfolio. Add personal contacts. Look around you, whose smiling? Find out why.........