50, 60, 70% off!!! All must go! *sounds of glass breaking* Craazy prices! Be there!
But wait, there's more! Because we love our customers, we may extend our sale until 2009! Maybe even 2010! Lots of time to save up and buy! What a deal! AIG You've done it again! Go go Lehman, go Lehman Brothers go!
Sorry but is anyone else seeing the current turmoil as an opportunity to purchase shares in solid businesses at knock-down prices? Sure prices will probably go nowhere (or perhaps lower) for the next year or two but isn't it great that if that does happen then there is quite a long time for us to be shopping? Obviously not for people who are at or are close to retirement, or those who will need to use their money in the near future but for those with 20 or 30 investment years ahead it sure looks like a fabulous opportunity.
When it comes to experience I am an infant (only been investing for 10 years) so please take my words with a grain of salt, but I have not seen shares this cheap before (for ex: in terms of price/earnings or price/book). Solid companies with consistent earnings records and no debt are being sold at low single digit pe's. Growth companies that are dominant in their field and have consistently grown earnings at the high teens to low twenties and that were once being traded at pe's of greater than 50 or 60 are now trading at pe's in the 20s. Companies with net cash positions are trading at less than NTA. Even the millionaire factory is getting priced close to its book value. With that said, I'm not saying one should jump in with both hands and buy. Of course with the current sentiment it is a good idea to exercise caution. Perhaps a little cherry picking here and there would be more appropriate. Drip-feed, as the DCA-ers would say. What's the rush, we have a long time to do our research.
As WB says, "Price is what you pay, value is what you get". Prices are falling like there's no tomorrow, but is this creating good value out there?
But wait, there's more! Because we love our customers, we may extend our sale until 2009! Maybe even 2010! Lots of time to save up and buy! What a deal! AIG You've done it again! Go go Lehman, go Lehman Brothers go!
Sorry but is anyone else seeing the current turmoil as an opportunity to purchase shares in solid businesses at knock-down prices? Sure prices will probably go nowhere (or perhaps lower) for the next year or two but isn't it great that if that does happen then there is quite a long time for us to be shopping? Obviously not for people who are at or are close to retirement, or those who will need to use their money in the near future but for those with 20 or 30 investment years ahead it sure looks like a fabulous opportunity.
When it comes to experience I am an infant (only been investing for 10 years) so please take my words with a grain of salt, but I have not seen shares this cheap before (for ex: in terms of price/earnings or price/book). Solid companies with consistent earnings records and no debt are being sold at low single digit pe's. Growth companies that are dominant in their field and have consistently grown earnings at the high teens to low twenties and that were once being traded at pe's of greater than 50 or 60 are now trading at pe's in the 20s. Companies with net cash positions are trading at less than NTA. Even the millionaire factory is getting priced close to its book value. With that said, I'm not saying one should jump in with both hands and buy. Of course with the current sentiment it is a good idea to exercise caution. Perhaps a little cherry picking here and there would be more appropriate. Drip-feed, as the DCA-ers would say. What's the rush, we have a long time to do our research.
As WB says, "Price is what you pay, value is what you get". Prices are falling like there's no tomorrow, but is this creating good value out there?
) by dollar averaging, by ignoring trends and concentrating on company fundamentals. Sure 70% are currently below purchase price, but then we are seeing multi year lows (especially for industrial shares which is where i concentrate).
