Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 6
My few thoughts.

1) Updated groves. Only groves requiring a small amount of judgement are Groves 1 & 3 for a fair P/E ratio. Grove 3 is immaterial in size and can be approximated by carrying value, which I believe slightly understated value.

At a P/E of 15 I get $295 for IV.
At a P/E of 16.5 I get $307 IV.

Either way I feel it is safe to conclude IV is $295+. Likely $300 to $330 is arguable. Maybe 10% higher a year from now.

2) If the Morningstar analyst updates again and arrive at a a similar $255 IV, I would conclude he is useless.

3) Buffet appears to be doing buyback into the $240's.

So at what price do you think we will see a noticeable level of buybacks?

My guess is in the $260's for now.

I think we will travel back above $250 pretty early in March.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.