Sentences with phrase «cigar butt stock»

If you're a Graham - style value investor buying a low multiple, cigar butt stock, your two improbable, extreme outcomes are: (1) bankruptcy or (2) the company's unexpected return to high growth.

However, he did start out by investing in cigar butt stocks, which are by definition junk.

Not exact matches

«Buying the stock at that price was like picking up a discarded cigar butt that had one puff remaining in it,» Buffett recounts in his 2014 letter to Berkshire Hathaway investors.

So I went around looking for what I call used cigar butts of stocks.

Norman Rothery has an article in the Globe and Mail's Strategy Lab The revenge of the market's castoffs: Cigar - butt stocks get last laugh about Deep Value: Carl Icahn is trying to squee...

His cigar - butt strategy involves the purchase of net - net stocks - businesses selling below their liquidation value as found using the following equation:

Warren Buffett figured this out years ago when he moved away from buying «cigar butts» — those statistically «cheap» stocks.

This is despite the fact that, as early as 1965 and while working under Graham, Buffett was becoming aware that the latter's strategy of buying cheap stocks (what Graham called «cigar - butts», or companies selling for less than their net working capital) was not ideal, for it did not consider the quality of businesses, and just a stock's cheapness.

Buying those cheap, cigar - butt stocks was a snare and a delusion, and it would never work with the kinds of sums of money we have.

The «old» Buffett, who looked for those cheap, «cigar butt» stocks would have never been excited to pay 25x free cash flow for a stock.

I've always been a value investor, picking both «cigar butt» Benjamin Graham stocks and selectively concentrating a la Warren Buffett.

For the remaining time from 2005 to 2016 I managed a portfolio of 12 to 30 «cigar butt» stocks.

@StockPursuit Mark Perkins Location U.S. Website Stock Pursuit Bio exploiting emotion and inefficiencies in the stock market, «value» investing, «growth» investing, cigar butt Stats 60 followers 7 updates Recent tweet: SOAP in play less thanStock Pursuit Bio exploiting emotion and inefficiencies in the stock market, «value» investing, «growth» investing, cigar butt Stats 60 followers 7 updates Recent tweet: SOAP in play less thanstock market, «value» investing, «growth» investing, cigar butt Stats 60 followers 7 updates Recent tweet: SOAP in play less than cash

There are, in general, two flavors of value investing: buy cigar butts on the cheap (wretched companies whose stocks more than discount their misery) or buy great companies at good prices.

Namely, Warren was always on the lookout for cigar butts; those discarded, disgusting and unloved stocks with no identifiable basis for future operations — however, they had one last puff left in them.