I wanted to set a language and I wanted to set rules that when clients and I talk, they don't just
talk about the stock price decline.
Not exact matches
CNBC contributor Dan Nathan
talks about his bullish bet on Blue Apron after the
stock fell to its IPO
price.
It is anomalous to see financial journalists
talk about the futility of market timing in the
stock market but then give the impression houses should be sold to avoid an anticipated collapse in
prices.
The other day we
talked about the possibility of index - y global
stock funds buying mainland Chinese shares at what look like rather excited
prices, and here it is:
SoftBank is in extended
talks with Uber shareholders
about the
price at which the existing
stock would be bought.
I developed the
price / peak - earnings ratio because it filters out the uninformative volatility of earnings during recessions, and provides a more useful framework to
talk about stock values.
Even so, with 45 percent year - to - date
stock price growth, there's
talk about whether Apple's tremendous success can continue.
In short, the strategy I'm
talking about involves selling a cash - secured put or a covered call on a high - quality dividend growth
stock when it's trading at a reasonable
price (which is typically at or below fair value).
To be clear, I'm not
talking about the options that were given to managers as compensation, I'm
talking about the options that traders use to make short - term bets on the
price of the
stock (puts and calls).
They are
talking about the average
price of a group of
stocks.
So an investor is
talking about how Netflix has quadrupled it's
stock price in the last seven Months.
As an immediate fall out of the event, HP has decided to make available all existing
stocks of the tablet at a ridiculously low
price tag of just $ 100 and this had suddenly made the TouchPad one of the most
talked about tablet... [Read more...]
As an immediate fall out of the event, HP has decided to make available all existing
stocks of the tablet at a ridiculously low
price tag of just $ 100 and this had suddenly made the TouchPad one of the most
talked about tablet in recent weeks.
As we all have seen in recent years, the media tends not to hold back when
talking about BlackBerry - it tends to be a pessimistic view ever since their
stock price started sliding from their peak.
I'm
talking about balance in an emotional sense too, achieving a level of equanimity that helps us keep our composure when the markets are in turmoil, so we don't do something we'll later regret, like selling
stocks in a panic at depressed
prices.
We'll
talk about the
price decline later, but for now note that all else equal, when a
stock's
price declines, its yield goes up.
When I say
pricing scheme, I'm not
talking about how much the actual
stocks / bonds cost when you buy them.
For those who think
about individual business valuations as an important underpinning of equities, rising
stock prices bring with them valuation considerations which we have
talked about in previous letters.
Nygren also
talks about the pros and cons of rising interest rates as they pertain to bank
stocks, why he is high on some industrial
stocks, and why he thinks investors are overreacting to oil
price declines, creating opportunities in oil
stocks.
We've
talked here before
about the importance of buying dividend - paying
stocks at low
prices in order to lock in high yields.
In short, the strategy I'm
talking about involves selling a cash - secured put or a covered call on a high - quality dividend growth
stock when it appears to be trading at a reasonable
price (at or below fair value).
I
talked about the faster rate of deterioration in foreign
stocks over domestic
stocks via the Vanguard FTSE All - World (VEU): S&P 500 SPDR Trust (SPY)
price ratio.
So when a
stock is called «cheap» no one is
talking about the dollar of the share
price
In short, what I'm
talking about is selling a cash - secured put or a covered call on a high - quality dividend growth
stock when it appears to be trading at a reasonable
price (at or below fair value).
In short, the strategy I'm
talking about — which I call a «10 % Trade» — involves selling either a covered call or a cash - secured put on a high - quality dividend growth
stock that's trading at a reasonable
price.
To be clear, I'm not
talking about the options that were given to managers as compensation, I'm
talking about the options that traders use to make short - term bets on the
price of the
stock (puts and calls).
1) Most other investments —
talking about stocks, bonds, mutual funds, etc — do not fix the cost basis and selling
price on the value of the commodity on only two particular days.
I've heard people, and even Buffett,
talk a lot
about stock prices being attractive at 25 P / E because the US 10 - year trades at 40 or 50 P / E (2 % to 2.5 % yield).
As you might have thought the growth companies would do well, you would no longer
talk about a premium for growth companies once you discover that it's a value company, once that has lower growth prospects and sell at low
prices rather than high
stock prices, which have provided a reward.
The headlines
talking about the horrors in the oil markets misstate the experience of the medium - term investor, especially if you got the
stock at a decent
price.
In short, the strategy I'm
talking about involves selling a cash - secured put or a covered call on a high - quality dividend growth
stock when it's trading at a reasonable
price (which is typically at or below fair value).
Everyone
talks about some combination of 1) owning part share in a quality business, 2) buying good companies at good
prices, 3) finding moats, 4) insisting on discounts / margins of safety, and 5) making contrarian bets (buying
stocks under duress).
«I will be
talking about pricing stocks, but I will not be
talking about their course of action next month or next year.
All they always
talked about was the effect of previous announcements on the
stock price.