Noel Valenzuela Jr.: I do somewhat
Taseer Raza: What have the returns been like? Are you looking to by under net asset value?
Paul R. Rivière: Only way to invest
Jay Harper: If you mean by Graham followed by Buffett. Then yes one has to follow value for a sound investment….
Taseer Raza: Well I’m not sure if Buffett buys under intrinsic value anymore?
Jay Harper: When did he stop? Didn’t stop 08-10
Matthew McLaughlin: Taseer Raza I’d agree that Berkshire as a whole doesn’t solely use Graham’s methods anymore but Buffett still does. Todd & Ted (both high ranking portfolio managers) at BRK read more in to the overall picture of companies than simply going off intrinsic valuation.
Jason Norwood: Too bad intrinsic value comes down to one’s own perception/expectations. Unfortunately, it is not as straight forward as computing a dividend yield.
David Nelson: Matthew McLaughlin Buffett doesn’t solely use Graham methods for evaluating stocks. He has openly admitted to being a hybrid of Graham and Philip Fisher
Sam Kvcs: Good luck finding any net net that isn’t going bust today
Hugh McMillan: I have an number of books on the subject. Knowing it and doing it are two different things. There are a number of informed people on the subject that post here. So ask your questions. Answering them will be a good refresher for us all.
Coelho Zé: I just buy Brk-B, if I want to do Graham
Hugh McMillan: So obvious I am ashamed I did not think of that.
Darren Yoelin: Warren Buffett does not follow the traditional Graham method of investing anymore
Hugh McMillan: I do not think he ever did. I have said it many times, learn from everyone copy no one. I think we all have a tool box of things that work but they all cannot be applied at once. Maybe if I was more patient but that ain’t going to happen.
Coelho Zé: Of course he does
Darren Yoelin: Really, Coelho? Which one of Berkshire Hathaways holdings is trading at a discount to NCAV. I’ll wait.
Coelho Zé: All were before he bought, his cost basis on KO is like 5 cents
Darren Yoelin: That is simply not true. BRK purchased KO for a split adjusted $2.50 a share. It also wasn’t trading at a discount to the net value of its current assets.
Darren Yoelin: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price” – BuffettThis is the exact opposite of Graham style investing. Graham argues that it’s much better to buy any company, wonderful or not, trading at a discount to its measurable intrinsic value.
Coelho Zé: You accounting for all of KO splits and dividends? He also bought billions of GE debt for practically nothing, BAC and GS during the Obama financial collapse of 2009. Come out of 2009 with about 25 billion in gains.
Darren Yoelin: No, why should I? It was obviously a great investment. It just wasn’t a Graham style investment. Have you read Securities Analysis?
Coelho Zé: If you can value companies better than Buffet, go ahead and invest on your own.
Darren Yoelin: I am responding to your false statement that Berkshire Hathaway makes Graham-Style investments. That is untrue and misleading
Coelho Zé: What do you call GE, BAC and GS purchases during the 2009 Crash than.
Darren Yoelin: Not trying to dig through balance sheets, but I’d bet that those companies were not trading at discounts to NCAV. Either way, you stated that “all” of his investments were trading at a discount to NCAV at the time of purchase. That is incorrect
Coelho Zé: What do I know about NCAV, I boughtBitcoin at 500 when everybody said it was trading at 1000 percent Premium.. and just bought again this week at 9600…See more
Justin Garcia: What is the Graham way? I’m trying to apply the markowitz profile theory (it’s not the modern profile theory)
Brian Fey: I would say, I do invest like him and Buffett. Its worked well so far.
Hugh McMillan: Tell us more. What is your portfolio? What is your system for screening to find value.
Brian Fey: I mainly buy great companies and hated stocks. Like Walmart 18 months ago, now up 55%. And Kroger 6 months ago, now up 22%, when everyone over reacted thinking Amazons purchase of Whole Foods was the end for Kroger. I only invest in companies I really know and understand. Actually casino stocks are my largest holdings. Which were greatly undervalued, but now are fairly valued.
Taseer Raza: Brian Fey What is your sell criteria?
Brian Fey: Taseer Raza very hard. I find selling MUCH harder than buying. I typically ask myself one simple question. Are this companies best days ahead of it, or behind it. And if I truly believe a company has peaked, (and I don’t mean in price), and it’s best days are behind it, then I sell. Which is why I got out of Apple after a 6500% gain.
Guillermo Garcia: Brian Fey, according ro your evaluation method, what are you watching to buy next? (Say one month time frame). I’m looking for ideas. I have a portfolio of 80 stocks, most of them selected using a similar approach and fairly well diversified according to Morningstar. But I’m running out of candidates And I’m 15% in cash. TIA.
Jeanie Welton Knapp: I like to choose my investments from Buffet’s list., I let him to the research.
Hugh McMillan: I have always felt by the time I know about the additions to the list I had missed the value buy point. I trust you found this not to be the case.
Joe Mahilum Friday: i eat graham crackers when i’m investing. does that count ?
Brian Elliott: I follow the Graham as best I can. For long time holds, I look for stocks on sale or out of favor. As of late I’ve been buying oil,gas and REITs. The way it looks now, I’ll be buying tech in 6 months.
Lloyd Ruskin: Joel Greenblatt said Grahams way was suitable for the time he introduced it – after the 1929 Wall Street crash. Principle is good, but there are better ways as Buffet and Greenblatt discovered. . . .later.
John Tierney: Yes I do
Dave Sieling: yes
Hugh McMillan: Anyone seen a question about Graham from Taseer Raza?
Taseer Raza: My questions were answered through this post I guess, but mainly I wanted to know return percentages from someone who was purely following Graham, which no one is I…
Hugh McMillan: Have you read the book?
Taseer Raza: yes I have…
Taseer Raza: what does it have to do with my question though…
Randy Phillips: I think value takes a backseat seat to growth in today’s markets.
Hugh McMillan: I do not know if that is correct but you are correct things have changed fundamentally _ global economy, interest rates off zero, Europe out of negative rates, and now the US tax renaissance.
Lester Connolly: 1940 needed Graham very low P/E, P/B, P/S and earnings growth. 1976 he made it higher. And today, he would accept also P/B 3.0. But P/S should stay under 3.0 and P/E under 15. And the earnings growth, if you want to sell the stock after one year with profit, should be more than 20% the next 12 months. If you want to hold the stock forever for dividends, the earnings growth should be around 10% annually. You have it here 🙂 http://nr1a.com/stocks
The best stocks for 2018 with potential the best shares value investing
Taseer Raza: Good site. What is your yearly return??