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

To: Paul Senior who wrote (6751)	4/15/1999 9:41:00 AM
From: Michael & B.Anne	Read Replies (1) \| Respond to of 78598

if we are talking about value investing. They ought to be able to deliver decent returns in this market You might consider forwarding this observation to Berkshire ... why are those wussies holding all that money and looking so hard with such a natural ability to deliver decent returns. Silly rabbits p.s. heard on BBC (perhaps missed exactly) that Buffett had bought into a british firm ATI (?) -- whoever they are?

To: Paul Senior who wrote (6751)	4/15/1999 9:45:00 AM
From: Ron Bower	Read Replies (1) \| Respond to of 78598

Paul, If I understand you right, Value investing means investing in companies, not the market? That you are satisfied if you've been able to buy into a company at a low price to it's value and that company provides a good return (PE) on your investment, it matters little what the market does to the price? If that's your point, then I agree. Value investing is long term investing based on company performance and the market price may not reflect this value - although eventually the value should be realized by the market if you've chosen wisely. Yet value investing is frustrating. In the past I bought AMTD at $15.50 and sold at $29.00 - it's now over $150 (PE over 650). Bought SWS at $16.50 twice and sold above $27 - it's now over $50 (about 40PE, over 3XBV). I have a long list of companies I have owned and sold when they went above MY value standard. The market has pushed them to ridiculous numbers while I sat on a stagnant portfolio with positions below BV (some at cash) and an average PE around 5. I hang in there because I feel insulated from market corrections (can they go any lower?) and the companies I've invested in should provide me with a good return. The only bright side is the smaller check I sent to the IRS. FWIW, Ron