Q&A and Other Ramblings
Monday Q&A – 8-11-08
Thank you to Eric Ahab for your comment. Glad to hear you're enjoying the site. David had a number of questions about our post regarding our valuation method. First, we did record the buy and sell transactions that occurred during back-testing and that helped us determine the additional amount of profit that would have been seen in our test.... »
Monday Q&A
This week I was having a conversation with one of our readers, and the topic of smaller companies came up. He questioned why we don't cover more small companies on our site. To be honest, a lot of people have asked that and I don't really have much of an answer. However, I've decided that we'll begin offering a "Small-cap... »
Some Q&A Regarding The Valuation Method
We've received a few questions regarding the valuation method we use, which is posted in detail in our post titled "New" Valuation Method. These range from where the 8.5 figure comes from to how we weight earnings. It's time to tackle some of those questions. Sudeep commented a long time ago asking where the 8.5 figure comes from in Graham's formula. ... »
Bear Stearns RIP 1923-2008
This evening (3/16/08) it is being reported that JPMorgan will be purchasing the struggling investment bank for $2 a share. Yes, that is correct I did not forget a digit, the purchase price was $2 when this stock was trading in excess of $150 a share this time last year. Absolutely shocking to see by far one of the, if... »
Thoughts on the Fed’s Actions
It seems to me that all the fuss yesterday about the Fed's $200 billion dollar "loan" - I'm sure you've all heard about it so I'll skip the details - was completely uncalled for. Since when does the Fed pumping more money into the economy not equal an increase in inflation? Think about it - whenever the Fed does anything... »