tag:blogger.com,1999:blog-7294165939647321702.post4726628875362913690..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Ignore EPS Where PossibleSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7294165939647321702.post-15283541949582485132011-08-02T15:01:43.507-04:002011-08-02T15:01:43.507-04:00Hi aagold,
I think you are right about the types ...Hi aagold,<br /><br />I think you are right about the types of companies I have been discussing. I think this is a function of what is available in the market, as you suggested. Back when I was discussing a lot of net-nets, I actually received comments the opposite of yours i.e. asking why I was stressing so many companies with assets instead of earnings!<br /><br />I agree with you that valuations based on earnings are more difficult, because they involve predictions. I think both strategies can be successful, however, as the stats bear out. Paraphrasing Howard Marks: go where the market is offering the best deals.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-14927432708294639172011-07-29T19:58:46.204-04:002011-07-29T19:58:46.204-04:00Saj,
I've noticed something about your invest...Saj,<br /><br />I've noticed something about your investing style that I'm hoping you'll comment on. I've been reading your blog for a while now, and it seems like early on you were much more of a "balance sheet" type of investor, while as time went on you've migrated more towards being an "income statement" type of investor. Is my observation accurate? One reason may simply be that there aren't as many "net-net's" around now, so you're forced to broaden your search for attractively priced securities.<br /><br />I've been making a similar migration in my own investing. One thing I've noticed is that assigning valuations based on the income and cash flow statements is a lot more difficult than doing so based upon the balance sheet. It requires much more understanding of the company's operations, business cycles, accounting details, and the overall industry. Do you agree?<br /><br />- aagoldAnonymousnoreply@blogger.com