Sentences with phrase «for cigar butts»

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.

Buffett doesn't look for a cigar butt in a declining business.

Not exact matches

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

Quite simply, paying fair prices for quality companies, instead of focusing on «cigar butt» type businesses helped the two build Berkshire Hathaway instead to the low maintenance, decentralized, cash generating machine it is today.

I do know that when Buffett worked for Graham - Newman, that many of the cigar butt ideas he pitched to Graham were passed over.

If you hold a special situation or cigar butt for 6 - 12 months you can get a nice return, but hold them for 5 years and the returns will revert to the mean.

For those of us with much smaller sums of capital, «cigar butts» might be the way to go (with the occasional compounder when they are available at good prices).

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.

They are all Graham cigar butts (companies with broken business models, and yet some residual balance sheet value), but not all Graham cigar butts are for Greenbackd.

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.

Quite simply, paying fair prices for quality companies, instead of focusing on «cigar butt» type businesses helped the two build Berkshire Hathaway instead to the low maintenance, decentralized, cash generating machine it is today.

Clearly the dividend yield looks attractive but P / B for instance looks quite expensive, so it's definitely not a Graham cigar butt.

Graham likes to use the metaphor of finding a discarded cigar butt on the ground and picking it up for one last triumphant puff.

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

One mistake was that, by focusing on cigar butts selling for low single - digit multiple of earnings or a low price in relation to liquidation value, I missed out buying into higher - quality businesses like Asian Paints and Pidilite, which compounded capital at high rates of return for a long time.

I think he was interested in the compounders at an early age... and although he bought net - nets and cigar butts like Cleveland Worsted Mills, most of the money he made — even early on — was due to a few big winners that were for the most part — great businesses.

I guess the lesson for me is that if I'm buying a spread of cigar butt companies — a la Walter Schloss or Ben Graham — I'm not willing to pay a higher average earnings multiple for a basket of high ROIC companies.

For example, the risk - adjusted returns on the higher - priced, but very high quality firms (i.e., Buffett firms) are much worse on a risk - adjusted basis than the returns on a basket of the cheapest firms that are of extreme low quality (i.e., Graham cigar butts).

Not too many cigar butts laying on the street just yet, but they may be here in the next few months if your CAPE analysis is wrong — so if there is a silver lining, it is that you will be back to evaluating fantastic investment opportunities and making money for your readers...

Remove the veil of emotions and I do not think it is doomsday - if this was a «cigar butt», this is only half way down - enough for a dozen more puffs, not just 1 - 2 IMHO.

We have gotten together for the last three weeks to discuss the practice of investing, primarily in the Buffett / Munger framework with an emphasis on Moats more so than the Graham / Dodd cigar butts.