No worries - I don't think you declare yourself an investment wizard!
As for your questions; the main reason I do not see any new value to "tool" is that value-focused investing is nothing new and that buying when prices are low (or selling when high) is logic for anyone who have experienced a yard sale...
This does not mean that I do not find JWR calculations interesting and will be interesting to see when PE10 again drop to 10 or below - I however fear a long wait - but have been wrong before!
Concrete actions to take in todays valuation enviroment
Moderator: hocus2004
For unclemick:
Fortunately, the speech is available on the internet and Alec has provided the link.
http://www-1.gsb.columbia.edu/valueinve ... DOC032.PDF
It was Pogo, not Peanuts.
If you look at my most recent post, you will see that we are very close in our general outlook:
Have fun.
John R.
My reference is the 5th edition. It has Warren Buffett's famous speech at Columbia University:The Superinvestors of Graham-and-Doddsville.Chapter 5, 4th ed The Intelligent Investor.
Fortunately, the speech is available on the internet and Alec has provided the link.
http://www-1.gsb.columbia.edu/valueinve ... DOC032.PDF
It was Pogo, not Peanuts.
If you look at my most recent post, you will see that we are very close in our general outlook:
That is, I think in terms of a core budget supplemented with other investments. OTOH, I do not know what lagniappe means [but my spell checker accepts it as is]. Please explain.Rephrased in terms of income streams: 1. pension plus hobby stocks cover the core budget and 2. SS (soon I'm 60) and IRA balanced index are lagniappe.
Have fun.
John R.
"the main reason I do not see any new value to the "tool" is that value-focused investing is nothing new and that buying when prices are low (or selling when high) is logic for anyone who have experienced a yard sale... "
Thanks, Ben.
I like the yard sale comparison. That suggests a way of selling this concept to aspiring early retirees. Almost all aspiring early retirees agree that it is necessary to spend efficiently to achieve financial independence early in life. What this board is really all about is learning how to invest efficiently as well. It's the other side of the coin.
It's frugal investing. If we are going to work so hard to obtain the maximum value from our spending dollar, why not put a little effort into obtaining maximum value from our investing dollar as well?
Thanks, Ben.
I like the yard sale comparison. That suggests a way of selling this concept to aspiring early retirees. Almost all aspiring early retirees agree that it is necessary to spend efficiently to achieve financial independence early in life. What this board is really all about is learning how to invest efficiently as well. It's the other side of the coin.
It's frugal investing. If we are going to work so hard to obtain the maximum value from our spending dollar, why not put a little effort into obtaining maximum value from our investing dollar as well?
I had previously asked unclemick about lagniappe.
The short definition of lagniappe is a bonus.
Two longer definitions from a thicker dictionary are:
1. A small gift presented to a customer with his purchase by a store owner.
2. Informal. An extra or unexpected gift; a gratuity.
The thicker dictionary traces its roots to Louisiana French, modified from American Spanish "la+napa" and from Quechua "yapa": addition.
unclemick is talking about an unexpected gift or bonus. This now makes sense.
Have fun.
John R.
Microsoft's Encarta Dictionary doesn't include this word, but two others do.If you look at my most recent post, you will see that we are very close in our general outlook:
That is, I think in terms of a core budget supplemented with other investments. OTOH, I do not know what lagniappe means [but my spell checker accepts it as is]. Please explain.Rephrased in terms of income streams: 1. pension plus hobby stocks cover the core budget and 2. SS (soon I'm 60) and IRA balanced index are lagniappe.
The short definition of lagniappe is a bonus.
Two longer definitions from a thicker dictionary are:
1. A small gift presented to a customer with his purchase by a store owner.
2. Informal. An extra or unexpected gift; a gratuity.
The thicker dictionary traces its roots to Louisiana French, modified from American Spanish "la+napa" and from Quechua "yapa": addition.
unclemick is talking about an unexpected gift or bonus. This now makes sense.
Have fun.
John R.