Not exact matches
It echoes Druckenmiller's
argument that cash is not being re-invested into machinery, labour and R&D but is instead being
used to buy back company
stock and artificially boost share prices.
[20] In essence, this was an early version of the conflict of interest
argument made below: promoters were
using nonvoting common
stock as a way of maintaining voting control for themselves.
This table offers the strongest
argument I can muster against ever
using borrowed money to own
stocks.
Buffett has
used this
argument about the relative p / e of bonds and
stocks to justify current market prices.
The
argument of a full - or over-valuation of
stocks backfires when applied to the existing equity holdings of a fund: If at present the manager does not want to
use the surplus cash to add to these positions, this implies that they have a limited appreciation potential, are fully valued or even over-valued.
My
argument is that this approach won't optimize their returns and they'd do much better with a balanced portfolio of some sort with greater representation in the
stock market
using more stable
stocks and funds.
This lends support to
arguments for
using realized volatility to construct a low volatility factor portfolio for preferred
stocks.
This line of
argument was
used in 2000 to suggest that
stocks were still cheap despite high apparent valuations.
Buffett has
used this
argument about the relative p / e of bonds and
stocks to justify current market prices.
This will also help stabilize your risk since bonds tend to move opposite
stocks (prperhaps just because everyone else is also
using them as the main alternative, though there are theoretical
arguments why this should be so.)
The truth is, analysts employ variety of strategies for
stock valuation, and
arguments can be made for or against the
use of nearly any approach.
It presents
arguments that mutual funds and the
stock market are not looking out for the consumer and takes the position that permanent life insurance is the best investment one can make, citing examples of people and companies who have
used life insurance to their benefit and profit.