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To: stock bull who wrote (95619)2/7/1999 3:19:00 PM
From: JRI  Read Replies (1) | Respond to of 176387
 
SB- I would say, of course, it is impossible to feel totally comfortable with (whatever figure one comes up with for) price/valuation...even Warren Buffett uses ranges.....(fudge factor)....calculations when determining this.

But certainly, every investor needs to do this while investing one's money..otherwise, the entire process (of investing) becomes practically meaningless...otherwise, how do you choose among the various investment options available?

What I think most do....what I certainly do...is look at things (more on a relative basis)...given that it is exceedingly difficult to feel 100% certainty about the absolute valuation of most assets....Call it rule of thumb, or what you will....Hence the existence of PE, PEG, CNPEG (!) and the like....

I would say indeterminate is, maybe, too strong a word here....I think I prefer to say that valuations are "subject to some error"...hence also Buffett's "margin of safety" concept...