tag:blogger.com,1999:blog-7294165939647321702.post6595106789778888984..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Microsoft Stock DipsSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7294165939647321702.post-42002959898850812622009-02-02T01:04:00.000-05:002009-02-02T01:04:00.000-05:00P/E is a decent metric, but the "E" part of that e...P/E is a decent metric, but the "E" part of that equation should be normalized or averaged for several years to account for fluctuations.<BR/><BR/>Ben Graham suggested never buying a stock with a P/E above 16 but he wasn't specifically talking about tech stocks. For tech stocks you have to be very careful to understand enough to know whether some newer technology may displace the incumbent, so it has to be within your circle of competence.Saj Karsanhttps://www.blogger.com/profile/04493152766022812984noreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-71179670672326547812009-02-01T13:32:00.000-05:002009-02-01T13:32:00.000-05:00It's also funny that Vista got horrible reviews, a...It's also funny that Vista got horrible reviews, and millions of copies were still sold. Windows 7 is getting good reviews and should pick up anyone who didn't switch to Vista.<BR/><BR/>It also has high inside ownership.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-73056976877016350252009-02-01T13:10:00.000-05:002009-02-01T13:10:00.000-05:00Thanks for the article. A quick question, how do ...Thanks for the article. A quick question, how do you think we should value tech companies where book value is significantly less than their market cap? Do we use P/E and if so, how do we determine what is the fair or safe P/E to use to ensure we have margin of safety. Thank you.<BR/><BR/><BR/>Little Hu from ChinaAnonymousnoreply@blogger.com