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

To: E_K_S who wrote (61584)	12/28/2018 10:25:42 AM
From: Ditchdigger	Read Replies (1) \| Respond to of 78744

Guess guess T would meet yours Dad's PE<= 10. I've added at 28.25 & 27.43 to fill out my position. I suspect and it was stated as such by the company, there will be major focus on the debt. (I don't think the market pullback is over yet)

To: E_K_S who wrote (61584)	12/28/2018 1:38:49 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78744

10 years is totally arbitrary. The relevant question is whether your holding period is long enough to return the principal on the investment. Graham’s holding period could be short because he was often buying at a discount to net current assets - meaning he got the money “back” the minute he made the purchase (although as a practical matter you really need Buffett-type “controls” to guarantee the liquidation). If you aren’t buying a business at a discount to liquidation value, you are projecting future cash flows will be adequate to achieve your hurdle rate of return over a certain period of time. For example, Buffett bought Coke at about 10X FCF if I remember correctly, which would mean if growth continued at the pace of inflation over the next 10 years then he would get “back” the money in 10 years. Any terminal value (which in Coke’s case was significant) would add to the margin of safety. But I would argue that investment would not have made sense if Buffett did not intend to hold for at least 10 years, if he was assuming 4% growth and 4% inflation. If he assumed higher growth, that would have reduced the hurdle holding period accordingly (perhaps 5 years instead of 10 years). I can’t do the math in my head.

To: E_K_S who wrote (61584)	12/28/2018 1:47:17 PM
From: Lazarus	Read Replies (1) \| Respond to of 78744

I only wish I was still holding some of the companies I bought back in 1998... like IEHC @ .15 - .18

To: E_K_S who wrote (61584)	12/28/2018 5:34:56 PM
From: Lazarus	Read Replies (1) \| Respond to of 78744

I remember when I was a young man in the 80's and I was listening to this old man in His 80's talking about stocks. He said I like to own stocks I can just "buy, and forget about" I distinctly remember two of the three stocks he recommended: 1) Hughes Supply - I think the stock was under 2 bucks and I recall that years later it was bought out substantially higher 2) Franklin Electric - another stock that was trading around $2 bucks at the time. I was to young to be smart enuf to listen to him.