Sentences with phrase «cigar butts as»
The gist of the post seems to be that Buffett, early in his investing career, didn't just buy cigar butts as everyone seems to think, rather his largest investments tended to be quality companies acquired at reasonable prices.
https://longtermvalue.wordpress.com/ Not exact matches
In particular, he buys «cigar butts» as he prefers contrarian plays, special situations, and even some GARP plays (growth at a reasonable price).
Munger knew that value investing had to evolve since the «cigar butt» types of businesses that Graham liked to buy started to disappear as years passed since the Great Depression.
But as he turns a corner, he spies a cigar butt on the sidewalk.
As he got bigger, it was harder to cigar butts that would really make a difference.
His cigar - butt strategy involves the purchase of net - net stocks - businesses selling below their liquidation value as found using the following equation:
I agree that buying unloved businesses at beaten down prices is a form of value investing; it's typically referred to as «cigar butt investing» and was practiced by Buffett in his partnership days.
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.
Early Buffett followed an investing approach known as cigar butt investing, and is straight from the Benjamin Graham playbook.
Buffett admitted as much in his 2014 letter to shareholders, «Cigar - butt investing was scalable only to a point.
As a value investor, one of the decisions is where to invest the time: cigar - butts vs quality businesses vs special sitations, etc etc..
On the other hand, if the comparison is between Graham & Fisher, I would think, as coc has mentioned, good cigar butts are hard to find (most of them have reasons to be undervalued).
Other Graham - style value investors wish Munger and Buffett the best of luck with looking at quality as a factor in their decision - making and are comfortable with their own «cigar butt» approach.
If someone who starts as an investor reads the book, he or she will appreciate that there are many ways to do it, many ways to cook, and he or she will probably be able to, based on his or her temperament, identify and find some affinity with one of those investment styles, whether it's George Soros or Paul Tudor Jones or Ben Graham with the cigar butts, or Philip Fisher.
Smoking is allowed in the privacy of your suite, but please be mindful that the train is generally made up of wood; please don't throw flammable items such as cigarette or cigar butts off the train as bush fires in Africa are a constant and dangerous hazard.