First off, I wanted to thank you for all of your thoughtful and insightful analysis. I think this website has done more for my investment analysis than almost anything else I have read. I know this must take an awful lot of time and effort, so I wanted to thank you for taking the time to assist all of out in cyberspace. Keep up the good work!Second, I have been doing a little low PE, low book value investing since the recent downturn. I stumbled across a little company - CLRO - that looks very interesting. Sells at 0.75 book, has ROE around 20%,lots of insider buying, and no long term debt. Market cap is very small, but still looks good value. Have you come across it in your searches? James McArdle
Hi Jimmy,Thanks for the kind words!I'll have a look at CLRO in the coming week and let you know if I find anything interesting.
Hi Jimmy,It doesn't look expensive, so I can see how you like it. I personally don't see a margin of safety here to justify an investment, but maybe you see something I don't.
Can you check your RSS feeds. I think the adverts you've included are killing it, at least on my Yahoo page.Thanks.
Hi Anon,Thanks for bringing this to my attention.I logged into my.yahoo.com and added this site's feed and browsed a few articles and didn't find any problems. Can you be more specific about what the problem is?
I just wanted to express my appreciation to you. You have highlighted several companies that fit my puchase criteria and have subsequently performed very well. Thank you for what you do.MT Bowling
Thanks for the kind words, Martin!
I just popped in to say "interesting site". I have been buying low PE stocks for some time now, and my records show that I have beaten the average fairly consistently.In 2009, I shot the lights out with my performance (2008 - well, let's not talk about that!).Recently, though, I have come to rethink my approach. Although I have done fairly well (and I'm talking about a period spanning a decade), I am now inclined to put this down to a lot of luck rather than great investment savvy.I recognise now that I need to take a more careful, measured approach, rather than taking the casual attitude that if it has a low PE, then it must be cheap.Your site gives a lot of food for thought.
Thanks, Mark!Though there may have been some luck involved in your success, the data does suggest that just running off a low P/E strategy should beat the market over the long-term.
Saj:Great article on SVLF - please provide a periodic re-look at it!I am long some SVLF.It sure beats WOLF, or others. (I was a past FUN owner)What are your thoughts on assisted living and skilled nursing homes?(I had SRZ out of it's hole, but disliked it's balance sheet, sold it, went to FVE, and some CSU. FVE has more than doubled, and if they can keep making money, I could see another 50% - even before the market demographic grows in the next 5-10 years)George
Thanks, George. I will keep watching SVLF.I don't know a lot about the managed care industry, but on a cursory look I'm not sure I see the value in FVE or CSU, as they trade at regular P/E's to pretty standard earnings. If you let me know where you see the value, I could perhaps take another look.
What do you think of BAMM acquiring HAST>
Hi Anon,At HAST's current price I probably wouldn't like it, but maybe it could bring cost savings, I don't know.
Recently discovered your site. I'm a retired market maker who now trades his own account (did business with some great value investors). Do you have an email?Keep up the great work!David
hi anon, yes my email is linked from the post itself
Hi Saj,I have been reading your posts for the past year and have learned much in the way about the signs one needs to look for when evaluating management and their respect for shareholders; but applying your principles is not easy. Case in point is LIZ. In a "fickle" business with a lot of debt. Management is making efforts to sell off low margin brands, reduce debt by extending maturites, reduce costs by selling disbtriution facilities. Is it enough? Is LIZ shareholder "friendly"?Thanks,Frank
Hi Frank,I'm not that familiar with the company, but I'll try to have a look at some point and will post back here if I have any comments.
Hi Frank,I've put my thoughts on the subject here.
Hi Saj,I've been reading you for a couple of years and thank you for sharing your insights and analyses.I wanted to ask what approach you would suggest for a value investor without the time to undertake and manage their own analyses and portfolio. A value index ETF? What about now, given the priceyness of the overall market and the few value plays available?Thanks in advance.
Hi Cesar,I would suggest one of two things:1) Regularly contributing to a low-cost index fund (e.g. ETF). Regularly means a set amount like once or twice a month, even or especially if the market falls.2) Investing with a value manager who can invest in a large universe. (Obviously, Buffett would be ideal as a manager, but he doesn't have the universe available because of his size.)Number 2 is preferable if you're willing to do some research on a manager, because in Number 1 you could get stuck investing blindly when the market is expensive.
Thanks, Saj.Might I be able to email you privately? Are you in the Toronto area?
Hi Cesar,Vancouver. My e-mail is linked in the post above.
Saj,Big fan of your blog. Was wondering if you've actually structured your fund legally as a fund or if it is a personal account that you are planning on converting to a fund at some later date?Do you invest in any international names? If so, I'm wondering where you custody your assets to give you access to other markets.Thanks! ...and keep up the good work!
Hi Mark,Separate entity, and just North America
Hi Saj, I am reading "Fooled By Randomness" and came across your site for the chapter summaries. I am curious if you have a top 10 must read books for someone looking to become more knowledgeable about investing.Thanks and great website, I am enjoying reading through the posts!Joe
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