Sentences with phrase «of cigar butt»

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.

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

«The supply of cigar butts was running out.

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.

Thus it is no longer a «cigar butt», but instead is a well - capitalized bank in the fastest growing area of the nation.

I'm not going to waste too much of your time on this strategy because Warren Buffet, the living Intelligent Investor, has tried and failed repeatedly to profit from bargain issues and since 1989 has publicly denounced what he nicknamed the «cigar - butt» strategy.

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.

The clown insists on putting side by side many of those things that we spend considerable time in keeping in separate drawers of the mind — altruism and selfishness, reason and impulse, religion and sex, Rolls Royces and cigar butts.

Other than the plethora of cigarette / cigar butts and pistachio shells in the sand, it was very clean.

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...

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).

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.

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.

By the time he linked up with Ben Graham, there were still a lot of «cigar butts» to pick up and puff.

The approach is called cigar butt investing because it's likened to the idea of picking up a cigar butt that's been discarded on the street but still has one good puff left in it.

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.

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

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.

I've since shifted away from concentration and back to a well - diversified, cigar butt portfolio, a la Ben Graham and Walter Schloss, largely because of the emotional challenges of Buffett's concentrated approach.

I originally planned to equal weight a portfolio of 20 to 30 cigar butt positions.

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

Many of his investments were what he would today call «cigar butts» where he would have one good puff out of the company and then had to move on to the next.

As a value investor, one of the decisions is where to invest the time: cigar - butts vs quality businesses vs special sitations, etc etc..

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.

What Leon Cooperman is referring to here is that Warren Buffett, with the help of Charlie Munger, was able to evolve his value investing style when Ben Graham style cigar butts companies trading at less than liquidation value disappeared after the Great Depression.

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.

Berkshire was a Ben Graham cigar butt — it was trading at around $ 7 and had net working capital of $ 10, and book value of $ 20.

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).

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).

After collecting the data on recent net - net «cigar - butts», I quickly realized something: about half of my list consisted of Chinese reverse - merger companies!

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.

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.

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.

Other value investors are numbers - driven cigar - butt investors who do not consider the quality of the business.

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.

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.

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.