WEB:The Oracle of Omaha- Warren Buffett
- Hugs
- Thruhiker
- Thruhiker
- matttheduck
- MichaelC_AU
- Thruhiker
- MichaelC_AU
- MichaelC_AU
- MichaelC_AU
- Hugs
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» Thruhiker - SCHOOL IS IN SESSION
A brief lesson from Professor Peter Lynch (not that the internet stock haters are gonna pay attention...)"Stock picking is an ART and a SCIENCE. If it just a SCIENCE only the CPA's would get rich."
I'm a CPA. And when I first starting picking individual stocks I relied on my training. PE was THE most important thing that I looked at. And I gotta admit it worked pretty well when it came to analyzing banking stocks.
But as I became more experienced I started to understand the art part of the equasion. The science part is easy to understand. The art part isn't. But Peter Lynch is right...ya gotta look at both.
So PE is useful. But it ain't the Holy Grail. And those who think it is are gonna miss out on the GIANT winners...the 30-40-50 baggers.
-- posted by Thruhiker
» matttheduck - aol & cable
michael, i'm glad you raised the issue of aol and cable connections. it's not the first time its been raised. it has never been raised around suite 101 with an explanation of how everyone being able to access aol more quickly is going to hurt aol. i'd like your explanation of that.-- posted by matttheduck
» MichaelC_AU - Re: Diamonds
Sorry, that gem metaphor is overused, there is nothing like a good example or two.There is a lot to the way WEB picks his stocks, that we can learn from. The two that I mentioned, buy what you know and always look for a value are part of it. He studied under the ones that wrote the book on value investing and has his own twist on the text books they wrote.
The Motley Fool and Peter Lynch are also similar in their approaches.
Buffett has averaged 24%/yr since the 60's, with out Microsoft, AOL, IBM, or other stocks that he nor we fully understand.
-- posted by MichaelC_AU
» MichaelC_AU - Re: AOL and Cable
The AOL and Cable part was just an example of what these companies face in a rapidly evolving market.As Brinker keeps saying half of these companies will not be around in ten years.
Concerning AOL and cable; I think this is a major concern for the company. They are in the middle of a massive campaign to provide their own high speed access, but I think that the Baby Bells and Cable Companies have an advantage over AOL. Maybe AOL will choose to buddy up with the Bells or maybe a court ruling will allow AOL use of the existing communication infastructure, as is the case in the power industry, and they will manage to survive. MY POINT IS THAT NOBODY KNOWS!!!
In contrast, before Berkshire Hathaway became the $100 Billion pound canary, Buffett could lie in wait until he found a stock selling so cheap that there was very little downside risk. And yes THRUHIKER, he would look at other things besides PE, especially the CEO's philosphy, and business prospects. He would look for companies with very small operating assets to fare well in inflationary times. But to forget about PE is like buying anything without considering its price, very stupid!
These were non-lemming feats such as buying Coke when we were dumping it.
I really think that the only way you can consistantly beat an index fund is through fundamental investing, that is what the Motley Fool, Peter Lynch, and Warren Buffett have and continue to do. You can ride a wild wave like the internet stocks, but it is just one trend. What are you going to do next?
You are correct thruhiker, PE is not everything, but thowing PE out completely is like driving blindfolded!
-- posted by MichaelC_AU
» MichaelC_AU - Re: Speak for ys
I love AOL! I nostalgilicly remember the times before the internet.I hope AOL gives Microsoft a run for its money. MY POINT IS THAT IT IS FAR FROM A SURE THING! I hope you are close to Brinker's 4% of net assets rule in AOL and at most 20% in the stock. Good luck!
If this cable scare materializes I might get in, if I have any money available for it.(I do have my wedding in 2 weeks) It would have to go down a bunch and I would only put in 4%.
-- posted by MichaelC_AU
» MichaelC_AU - Investing Art
Thruhiker,Is that like the art my Dad mastered when he would pick winning greyhounds, off of the nightly T.V. recap?!? He would hit serveral quinellas a night in practice and call it skill. All this skill in picking dogs from a brief roll call!
That to me is what is going on with AOL and fans and there is nothing wrong with it!
You at least are into some fundamental indicators, where as the majority are just LEMMINGS!
-- posted by MichaelC_AU
» Hugs - Lemmings.
Wondering where exactly it is the line is drawn between a lemming and someone who, after they have acknowledged their own shortcomings in an area of financial expertise and have decided to more prudently and oft times wisely follow the advice of an more "expert" financial advisor?I suspect that any attempt to draw that line is going to be a highly subjective issue. Especially in the arena of investing in internet equities. Wouldn't touch it with a ten foot stick, personally.
Hu
-- posted by Hugs
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