Saturday, November 08, 2008

Value Investing Links for Fun

  • From the Dividend Daily, is value investing dangerous? Whether you buy individual stocks or mutual funds, one of the things you need to be aware of is the myth that value investing is as safe as strategy as one can follow.  And he cites as examples, $AA, $EK, $GGP, and $GM.
  • You know what they say, value investing works as long as you pick the right stocks.  Just like growth investing. LOL.
  • Pick the right stocks, dammit Jim!
  • From US News and World Report, Kirk Shinkle writes: Bruce Greenwald on value investing.  I'll tell you the one really nice reason to be a value investor: When things like this happen, you cannot help but go nuts at the opportunity.
  • "Go nuts at the opportunity!" I'm koo-koo for Coco Puffs!  Of course, when should one go nuts?  When $C was $30?  Yowch.  Now?  Single digits?  Where is the right time to go nuts on $GM and $F?
  • "Kirk Shinkle?"
  • Buffett's value investing styleWhen investing in stock market, Warren Buffett is very careful. He sets very strict requirements to select stocks. So, stocks that fulfill his requirements are seldom being found. Earnings versus growth, high return on equity, minimal debts, strength of management and simple business model are five main criteria, which are used by Buffett to select stocks to invest. He usually concentrates in a few solid stocks, which able to give high return of investment. These few stocks usually are in the industries that he understands the most. He is also very careful to the local bourse, which is an emerging market that could be very volatile. Besides, he is also watchful to the market sentiment, which could be easily affected by many other external factors.
  • My favorite in the article above, Good stocks are worth to hold for as long as possible.  Until that good stock goes to $0 and your broker flushes it out of your account.  LOL.
  • There's a difference between a good stock and a good company, right?
  • Is it a good time for value investing? Here comes the PEG ratio stuff.   Boy, that's a lot of work unless you have a service.  But then if everyone follows the service and there is such a thing as efficient markets, well...
  • I think overall, one needs to be diversified and limit inidividual stock risk.  IMHO, of course.
  • The Sweet Aroma of Value Investing.   People need to eat, right?  Maybe those stocks.  Etc.  This is just common sense that life will go on and people will live their lives and consume.
  • Well, those of us who have ridden this bear market down are all buy and hold investors now, right?  Or hold and hope investors...  Ah, it'll be okay.  I don't know about you, but I continue to dollar-cost average in.  I also move money around to things that I think are of value.  I mostly own index and sector ETFs, but also have many individual names.  I think we're probably going to see the stock market price in and anticipate an economic recovery soon.


Oh, and are the Atlanta Falcons at home a value bet over the Saints on the road? Hmm...