The ModernGraham approach requires first determining what type of investor you are. It is assumed that you are an Intelligent Investor, as Benjamin Graham would put it, or in other words you seek to be patient and factually-based in your investing and has nothing to do with your actual IQ. However, Graham took it a step further and divided Intelligent Investors into two types: Defensive and Enterprising.
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’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 […]
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 […]
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 – […]
In the WSJ today there was an interesting article regarding P/E ratios and using them to determine appropriate buying and selling opportunities. The article was on C1 and the author contended that although the S&P is trading at 13.2 times expected earnings, this number is likely to drop. I find myself hoping that the author […]
Yesterday I wrote a response to an opinion article in the Wall Street Journal regarding $100 oil. Later in the day, one of our readers, AaronH, made some good points in a comment. Here is an excerpt of what Aaron pointed out: “I have to disagree with the above strongly. Price here is not due to […]
Today there is a very good opinion article in the Wall Street Journal. The article is titled The World has Plenty of Oil and was written by Mr. Nansen Saleri, president and CEO of Quantum Resevoir Impact in Houston. Mr. Saleri essentially says that we are nowhere near running out of oil and the ongoing concerns […]
This post has been about 2 weeks in the making. A couple of weeks ago, we were asked in a comment if we could elaborate a little on our valuation process. We had been using a complex mathematical formula and system to determine value that took into account a number of different approaches. As the […]
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 […]