Comments on: Make Your Loved Ones Get It http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it Value Investing Blog Thu, 09 Sep 2010 19:16:04 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: (MikeR) http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1306 (MikeR) Mon, 28 Jan 2008 14:46:59 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1306 I have an IV of about $60 for MCD, so if MCD gets down to around $40, I will be interested in starting a position. I have an IV of about $60 for MCD, so if MCD gets down to around $40, I will be interested in starting a position.

]]> By: Joe Ponzio http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1273 Joe Ponzio Wed, 23 Jan 2008 16:11:26 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1273 Larry, The valuation process is <a href="http://www.fwallstreet.com/blog/25.htm" title="here">here</a>, along with a number of examples. Take a look at the <i>Categories</i> on the right side of the page to find links to various analyses and other resources. Larry,

The valuation process is here, along with a number of examples. Take a look at the Categories on the right side of the page to find links to various analyses and other resources.

]]> By: Larry http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1271 Larry Wed, 23 Jan 2008 13:03:21 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1271 Great article. What you don't reveal is your formula for valuing a company. If you will share it, I'll do my own homework. If you don't want to share, please list the top ten undervalued stocks in your universe. Great article. What you don’t reveal is your formula for valuing a company.

If you will share it, I’ll do my own homework. If you don’t want to share, please list the top ten undervalued stocks in your universe.

]]> By: Joe Ponzio http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1208 Joe Ponzio Wed, 16 Jan 2008 04:41:55 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1208 Secret Agent Man (inside joke for geno), I wasn't recommending MCD (as Night said). In fact, if you reread the post, you'll see that I explained how fairly valued McDonald's was - give or take a few billion dollars. Since we are looking to buy when the companies in on sale at 50% or more, MCD is clearly a pass at these prices because we can't be certain about the future and we don't want to gamble that our assumptions are dead-on. Secret Agent Man (inside joke for geno),

I wasn’t recommending MCD (as Night said). In fact, if you reread the post, you’ll see that I explained how fairly valued McDonald’s was – give or take a few billion dollars. Since we are looking to buy when the companies in on sale at 50% or more, MCD is clearly a pass at these prices because we can’t be certain about the future and we don’t want to gamble that our assumptions are dead-on.

]]> By: Night http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1202 Night Tue, 15 Jan 2008 07:51:19 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1202 He wasn't recommending anyone buy MCD right now. Just using it as a well-known example of a strong business for the very lay. He wasn’t recommending anyone buy MCD right now. Just using it as a well-known example of a strong business for the very lay.

]]> By: geno CASH IS KING http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1200 geno CASH IS KING Tue, 15 Jan 2008 03:46:56 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1200 MCD P/E is way too high a speculative play with no magin of safety!!! YES it has durable competitive advantage and a great product moat but trading at almost forty times earnings there are a lot better companies to invest in. Graham states clearly there are no good stocks only cheap ones and expensive ones. I would wait until MCD P/E comes down to earth or just avoid it and not buy it just because the price keeps going up!!! A "speculator" mentality intuition is to buy a stock because it is rising playing right into the Mr. Market mentality talked about in the Intelligent Investor. People will always eat at McDonalds and it is a well run business but the stock is also well run UP!!! The whole restaurant sector is "toast" with rising fuel and commodity prices so wait for a huge buying oppurtunity P/E less than 17 and then you will be thinking like BUFFET!!! I try to think like BUFFET a lot and only eat cheeseburgers and drink 4 cherry Coca-Colas every day and my portfolio was up about 20% last year with no TECH,margin of safety,durable competitive advantage and product moat; all priciples of BUFFET and GRAHAM!!! CASH IS KING!!! MCD P/E is way too high a speculative play with no magin of safety!!! YES it has durable competitive advantage and a great product moat but trading at almost forty times earnings there are a lot better companies to invest in. Graham states clearly there are no good stocks only cheap ones and expensive ones. I would wait until MCD P/E comes down to earth or just avoid it and not buy it just because the price keeps going up!!! A “speculator” mentality intuition is to buy a stock because it is rising playing right into the Mr. Market mentality talked about in the Intelligent Investor. People will always eat at McDonalds and it is a well run business but the stock is also well run UP!!! The whole restaurant sector is “toast” with rising fuel and commodity prices so wait for a huge buying oppurtunity P/E less than 17 and then you will be thinking like BUFFET!!! I try to think like BUFFET a lot and only eat cheeseburgers and drink 4 cherry Coca-Colas every day and my portfolio was up about 20% last year with no TECH,margin of safety,durable competitive advantage and product moat; all priciples of BUFFET and GRAHAM!!! CASH IS KING!!!

]]> By: Dennis http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1183 Dennis Mon, 14 Jan 2008 07:37:07 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1183 Good lesson here, thanks Night. Although I am sorry how it turned out for you. Chances are she will continue to watch the stock price and when it turns for the better then she will be ready to listen. In the future I will explain in GREATER detail to my friends and family the idea behind buying a wonderful business at a low price and being patient enough to wait for the market to catch on. If they don't seem to understand before I manage their money then I will give them the "You are not ready grasshopper" and politely decline. Good lesson here, thanks Night. Although I am sorry how it turned out for you. Chances are she will continue to watch the stock price and when it turns for the better then she will be ready to listen.

In the future I will explain in GREATER detail to my friends and family the idea behind buying a wonderful business at a low price and being patient enough to wait for the market to catch on. If they don’t seem to understand before I manage their money then I will give them the “You are not ready grasshopper” and politely decline.

]]> By: Bill http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1172 Bill Thu, 10 Jan 2008 11:06:56 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1172 Excellent point J. Thank you. Excellent point J.

Thank you.

]]> By: J http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1171 J Thu, 10 Jan 2008 11:01:55 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1171 When it comes to family and close ones, it is best NOT to tell them which stock they you bought for them. Just as Buffett did in his early partnership (and still does with BRK?) he releases performance figures only once a year. Pabrai also only releases performance figures 4 times a year. Keep your investing a black box to those that dont understand and it will benefit both parties. When it comes to family and close ones, it is best NOT to tell them which stock they you bought for them.

Just as Buffett did in his early partnership (and still does with BRK?) he releases performance figures only once a year.

Pabrai also only releases performance figures 4 times a year.

Keep your investing a black box to those that dont understand and it will benefit both parties.

]]> By: Night http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1170 Night Thu, 10 Jan 2008 10:12:35 +0000 http://www.fwallstreet.com/article/99-make-your-loved-ones-get-it#comment-1170 I agree with you david, but it won't happen. I agree with you david, but it won’t happen.

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