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

To: Ford Law who wrote (55931)	8/22/2015 2:12:54 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78656

Ford: good points. Graham contradicted himself on multiple occasions (ultimately deciding late in life that he agreed with EMT). It's left to the individual to decide "how low he can go." Relating to that, on MB's comment: MB's valuation standards were sufficiently aggressive IMO that they could withstand market variance. The same would be true of Graham. He said somewhere else he was closer to Graham than Buffett. The problem is that the average investor suffers from reality distortion: during a mature bull ever higher valuations can be justified, and during a mature bear the reverse. I'm amazed when I look at old SA articles from 2007/8 how bearish the authors were on issues selling at PSRs < 0.2. On the other hand, I'm amazed at how 10, 15, 20x EBITDA multiples are being pitched as "value" nowadays based on M&A comps. All in the name of Graham and Buffett style value investing. IMO, totally ignoring the price action and still coming out ahead is hard to do unless you apply bear standards at all times. I've been trying to do this with my long screens but it's been very difficult outside the oil patch until quite recently. I've found quite a few using Lazarus-type screens. I've probably offended enough people at this point:) Time to go out and fill up my dirt cheap car with dirt cheap fuel.