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Is there a chance of a chart on this srock that lost a quick 17% yesterday? I can't find any price info back further than 1992.

Bill
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Is there a chance of a chart on this srock that lost a quick 17% yesterday? I can't find any price info back further than 1992.

Sure, here it is, including today's price at the end:

http://invest.kleinnet.com/bmw1/special/MFE.html

-Mike
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Thank you - a bit too early.
Bill
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"Thank you - a bit too early." - Bill

You are correct, but this is an attractive chart with over a 16% CAGR and a present 12.1% CAGR. The price can become more attractive but the BMW Method has placed you well ahead of the curve. You now have time to do your due diligence so you will know what to do when the price drops.

The thing I like about the BMW Method is there is no "right way" to make decisions. You can do the due diligence and wait for the right price, or you can find the low CAGR and then do the due diligence.

I prefer to know what I want to own and then wait for the market to screw up and make the price too low. I am not opposed to doing this in reverse, but it is much easier to know what you want in advance.

Nokia was a good example of this. I had done my analysis of NOK and I really wanted to own that stock. The problem was, when I first looked at it, it was well over $20/share. However, when the price tanked in early 2004, I was already prepared to buy.

One day, 2828 posted that Nokia had dropped drastically. I had not noticed it myself, but that is where we can all help each other. Hopefully, one of us will already have the due diligence completed when a stock drops in price. That will allow us to react accordingly.

I thought Nokia was a good buy below $16/share and that caused me to get into the stock too quickly. The price later actually dropped to under $11/share. As we withessed right here, that caused us to buy too much Nokia. However, the stock has rebounded along the CAGR curve which is on a CAGR of between 20% and 22% on my chart. But, my chart never changed. It showed the CAGR even before the stock price tanked.

Our portfolio contains 2300 shares of Nokia at an average price of $13.53/share. Plus, the NOK dividend was paying 3.4% the whole time. We could have done better if we had been more patient and waited for that $11/share price, but who knew how low Nokia would go? I was happy at any price below $16/share! Today, Nokia is selling at $18.50 and I feel that it is still too cheap. As an investor I probably would buy NOK today, but I already own too much.

I hope this explanation helps to show how I approach this. The CAGR chart leads me to find stocks that I want to own, but the underlying business has created that chart. If the price is too high, I have time to study the business in more detail to make sure I want to own it. Eventually, the price will be attractive...the BMW Method proves this over and over again.

When the price is right, we buy. If it goes lower, we buy more because we want all of that business we can afford. If it does not go any lower, at least we own a great company at a low price. The market does all of the hard work for us. We just decide when to get on board and when to hop off.

Other people pay to ride a roller coaster...we have a roller coaster that pays us to ride it. Now, that is a good deal in my book.
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