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

To: petal who wrote (66722)	3/1/2021 12:29:37 PM
From: Madharry	3 Recommendations Recommended By E_K_S Lance Bredvold petal Respond to of 78774

Regarding book value. I dont think you can hang your hat too much on the value of non current assets. a lot of times that real value is a function of its ability to generate cash flow. In a former life as a bank loan review officer I had to look at loans made to different industries and see if they made sense. When I looked at our loans that were collateralized against ocean shipping vessels I discovered that the bank was not adequately compensated for its risk. We were making the loans believing that we had adequate collateral but in reality when shipping was in a down cycle shipping revenues dropped the shipping company could not pay the mortgage and the bank lost money after foreclosing on the ship because the value of the vessel also dropped. My unpopular suggestion was that the bank raise rates and/or get an equity kicker because we were in effect a partner in the success of the business.. Similarly if you ever try to liquidate a business you will you will usually get much less for inventory and equipment that is listed on the balance sheet. In some cases the cost of moving the asset might exceed the value of the asset on the balance sheet. If I were your age I would look at what consumer good your peers are excited about. If I had bought dell stock when my wife bought a dell computer and apple stock when she bought an i phone I could have my own private island today.

To: petal who wrote (66722)	3/1/2021 1:01:14 PM
From: Paul Senior	3 Recommendations Recommended By DinoNavarre Lance Bredvold petal Read Replies (2) \| Respond to of 78774

I offer another idea for consideration. This applies to me. Try developing a money mind. =========================== Let us assume you are buying something - a product or service. You bought it for a specifc reason. Train yourself to ask yourself, "Are other people buying it for the same reason? Did I buy it because I heard about it from other people and they like it recommend it? Will I be using this product for a long time? If it's a consumable, will I be buying the item again and again? Train yourself to ask yourself, "Who makes this product or provides this service?" "Is the company, publicly traded?" Big step: Train yourself to check out each and every such stock. I have done this, liked the results, and have gone past it. Pretty much automatically, I now attempt to buy stock in any and every company whose products or services I use. In the back of my mind, I tell myself I will hold the stock, maybe just a few shares, as long as I do business with the company or use its product or service. I'm on ZOOM. So I bought shares. At my local coffee shop, the young people running it have installed Square (SQ), a paying device for us customers. I've used it, like it, and so I bought shares. We're buying a new dishwasher: My wife selected a Whirlpool. I'm buying WHR. (Actually, this stock looks reasonable, unlike the previous two). I, like most other geezers, am getting the COVID vaccine: I bought stock in a basket of vac developing companies. I have an Audi: I have Volkswagen stock. (Wrong decision maybe: I shoulda bought a Tesla and so then that stock. Oh well.) Last July I mentioned I was buying stock in my favorite drink for exercise: CELH. It was way overpriced for a value stock at $22. Ridiculously so. Now that it seem to have become even more popular a drink, the stock's mid $60's. (I'm selling down to a miniscule few shares.) You get the idea. I'll make these points: 1. What helps me with these stocks is that I expect that overall I will do ok. I don't see how I can make anything but losses on ZOOM. No matter. I felt the same about CELH. I bet/hope that in this current market my winners will continue to outperform over my losers. 2. What helps the most has been time in the stocks. For example, as long as I am buying AAPL stuff, getting things from AMZN, etc. I intend to continue the course, holding on. Hoping I don't get scared out.