Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev | Next
Author: Grakf One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 214562  
Subject: Re: Berkshire's P/B Date: 1/25/2013 4:19 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Remembering a few snippets from Munger this is why he advocates looking for quality businesses but waiting for fair value or below for purchase with a threshold of cper15. His thoughts on this PER may relate to long term market averages of fair value. If you buy at fair value you cannot go too far wrong if the company is growing earnings at 7% plus even if you have wait 3-5 years for valuation to catch up.

I start to get interested in stocks on my list around the 15 range. Say WMT, and JNJ and more interested around the 10-12 range. TSCO.

There are one or two where earnings quality is so good long term eg KO that PERs above may be considered eg up to 18 but the think KO may be the only one.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement