ASX good value?

[Deltaberry]

Not sure why we always quote Buffett.

Everybody has their own investment style.

I just went heavily in to a stock on the back of the fact that one of the most successful hedge fund owners I know has gone very heavily in to that stock. A non-producing, currently unprofitable company with a major refinancing coming up. Buffett would never touch a stock like that. Major company though. Already up 80% and still going up (market up overnight again).

Another one I'm looking at - a stock tip from arguably one of the two most successful ECM houses in this country (boutique, Perth-based) - already up 50% in a month with a target price 1000% above where it is now. Despite being a $250m market cap company, this stock is entirely speccie and still awaiting drilling results. Already the entire broking world is spruiking it just as stocks like PLV were spruiked in the mid 2000s. Again, Buffett would've told you to stay away.

 

[Sunfish]

I just checked the BRK A chart and it is where it was two years ago and apart from a dip in the 3rd qtr last hear is range trading, which is why I said he is struggling. At my age I can't afford "lost years".

To say the NYSE stocks are "undervalued" is a subjective judgement. If you assume an "informed market" it is trading at fair value.

 

[Intrinsic_Value]

I beg to differ Sunfish. Buffett prefers markets where valuations are attractive and that happens only during bear markets and/or sideways tracking markets. As long as the businesses are doing well but stock prices are going no where he loves it because that means he can buy more of the business.

I believe over the past 1 year he has invested more that $15Billion (IBM, Lubrizol and other), and that figure would be much higher if you take into account last 3-4 years.

His philosophy is to be patient, as long as the businesses are doing well the stock prices will follow over time. Even at 82years he still invests for the long term.

Cheers,
Oracle.

but those are individual stocks, not the market as a whole. The earnings in those companies are continuing their 'upwards' bullish movement and the earnings yields were reasonable at point of acquisition.

Hence when buffett says he doesnt care if the share price is stagnant, he is really only telling half the story. What he means is that he is quite happy for the share price to be stagnant so long as earnings are still going up (and by this i mean secular earnings, Buffett is also happy to top up where a company has secular earnings growth, but is going through some cyclical difficulty such as with Tesco).

 

[oracle]

Not sure why we always quote Buffett.

Everybody has their own investment style.

Because some of us think the way Buffett invests is the most logical sense to invest money. Investing should be about getting maximum returns with least amount of risk (By risk I mean possiblity of capital loss). I understand not everyone will agree with this philosophy and that is fine. I don't intend to change anyones opinions about investing.

I just checked the BRK A chart and it is where it was two years ago and apart from a dip in the 3rd qtr last hear is range trading, which is why I said he is struggling. At my age I can't afford "lost years".

Two years is hardly long term in my books. But I guess we can agree to disagree on what constitutes long term

Buffett has been saying this since 1980s that as the size of Bershire increases don't expect the same levels of return as in the early days. Although, he said his aim is to beat the S&P500 index by few percentage points.

Looking at Bershire's financials the book value in 2009 was around $131Billion and in 2011 is around $165Billion (26% increase). Net Profit after Tax in 2009 was around $8Billion and in 2011 around $10.2 Billion (27.5% increase).

If (big IF) you believe in value, each stock of Bershire comes with more value today than 2 years ago assuming the price is the same.

Cheers,
Oracle.

 

[Intrinsic_Value]

in my opinion if one wants to invest 'buffett' style then they should not be investing in berkshire. They should try to invest directly. Look at the market cap of berkshire. Being such a fat elephant it takes alot of energy (read profits) to move it. Buffett is severely hampered by his own prior success.

 

[yadreamin]

Hi All
My big fat dumb question of the day is can l put a stop loss on a share l hold in my comsec acc?
If l can how do l do that?

be gentle now
cheers

 

[Macca]

Hi All
My big fat dumb question of the day is can l put a stop loss on a share l hold in my comsec acc?
If l can how do l do that?

be gentle now
cheers

Best to have a roam around Comsec but these may help

Edit : I can't get the links to work but if you go to Comcec and look up conditional trading that should help you

 

[redwing]

Best to have a roam around Comsec but these may help

Edit : I can't get the links to work but if you go to Comcec and look up conditional trading that should help you

Conditional trading as Macca said and from memory you have to read the section and answer a few questions

ETrade is a bit easier with its triggers

 

[Aaron_C]

A better idea is to change trading platforms. Comsec is crap.

 

[Deltaberry]

Very hard to trade if you don't have something like live IRESS in my opinion. That's just me though.

 

[yadreamin]

Thanks chaps for steering me in the right direction
cheers

 

[Intrinsic_Value]

just one word of warning with setting automatic stop losses, they can be hit when a company goes 'ex-dividend', just look at Myer the day it when ex.

In this environment with dividends representing a higher % of stock price (due to higher yields), no needs to be careful setting stop losses to close.

Deltaberry, your system relies upon insider contacts. Not applicable for most of the population, and therefore not much use to the 'outsiders'.

 

[Belbo]

Astonishing, IV. Did you think for a single moment it was ever meant to be?

 

[Dawn]

Not sure why we always quote Buffett.

Everybody has their own investment style.

I just went heavily in to a stock on the back of the fact that one of the most successful hedge fund owners I know has gone very heavily in to that stock. A non-producing, currently unprofitable company with a major refinancing coming up. Buffett would never touch a stock like that. Major company though. Already up 80% and still going up (market up overnight again).

Another one I'm looking at - a stock tip from arguably one of the two most successful ECM houses in this country (boutique, Perth-based) - already up 50% in a month with a target price 1000% above where it is now. Despite being a $250m market cap company, this stock is entirely speccie and still awaiting drilling results. Already the entire broking world is spruiking it just as stocks like PLV were spruiked in the mid 2000s. Again, Buffett would've told you to stay away.

How do you know that? Do you have access to the share registry

 

[Deltaberry]

How do you know that? Do you have access to the share registry

Appendix 3B. Public info, if people know what to look for/how to look at it.

 

[jaycee]

Appendix 3B. Public info, if people know what to look for/how to look at it.

So how do we the public find out what we don't know - ie what to look for ?!

 

[Sunfish]

Google is your friend.

Search on the company and "top ten shareholders".

Buffett is never outside that list if he invests.

 

[chindonly]

So how do we the public find out what we don't know - ie what to look for ?!

Read....educate....listen.....research.

E-trade and the ASX website have announcements for each company listed.

If there is a change in substantial holdings, they have to report it.

 

[Deltaberry]

So how do we the public find out what we don't know - ie what to look for ?!

Gain more exposure, do more research.

 

[jaycee]

Read....educate....listen.....research.

E-trade and the ASX website have announcements for each company listed.

If there is a change in substantial holdings, they have to report it.

oh is that all Deltaberry was talking about ?

doesn't every e-broker provide this info as well ?