Author Topic: What are you buying today?  (Read 2194407 times)

DCG

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Re: What are you buying today?
« Reply #760 on: October 16, 2014, 05:32:57 AM »
There was a very long time without a correction. Everyone was waiting for some reason to drive a correction. I have no idea what the market will do in the near term, but European concerns seem overblown. Is Europe really all that different than it was 2 weeks ago when the market was rallying?


Picasso

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Re: What are you buying today?
« Reply #761 on: October 16, 2014, 05:43:15 AM »
I think it is more likely that Europe always sucked and the bond market reflected it.  30-year bunds are down under 1.8% and equities shrugged it off as if it didn't matter.

You don't have 2% 30-year bonds when there is a lot of growth and any worry can cause that tiny growth to disappear.  So if anything I think the big push into European equities to benefit from potential QE was misguided.

Actually, I had a post pretty much near the top of the market on this: http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/naked-puts/msg189834/#msg189834

Options skew and bonds were telling a totally different story than stocks.  But there have been so many false signals in the past couple years that no one really cared.

It will be interesting to see how this shakes out.  We are value investors after all, so this should be extremely beneficial.

TwoCitiesCapital

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Re: What are you buying today?
« Reply #762 on: October 16, 2014, 05:54:18 AM »

If the buying and selling threads are accurate guage of the sentiment in this forum, people here in this forum feel like today is just a dip and a buying opportunity.

Many people on this board have been accumulating cash for awhile now. Even after my two most recent purchases, I'm left with 25% cash. The two stocks I bought were down 30-60% and looked like steals even if I am concerned about general markets going down. Still plenty of ability to average down if my fears are realized.

I don't think you can gauge sentiment by the buying and selling activity here. Most members seem to ignore the macro  simply buy deals they like regardless. Maybe the sizing of the buys and sells changes - i know mine do- but  few people here try to call tops and bottoms

KCLarkin

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Re: What are you buying today?
« Reply #763 on: October 16, 2014, 06:33:15 AM »

If the buying and selling threads are accurate guage of the sentiment in this forum, people here in this forum feel like today is just a dip and a buying opportunity.

Long term, it is a dip and a buying opportunity. Whenever you see forced selling you can assume there will be some opportunities.

In the short term, the buying activity on this forum suggests there is still room to drop further.


Can you explain your latter sentence?

As more bargains become available, the "buy-the-dippers" will put cash to work. This temporarily slows the bottoming process. When the buying is exhausted, the bottom will be formed. My instinct says we haven't seen the bottom yet. I don't try to time the market though. IBM hit my target price, so I bought.

Ross812

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Re: What are you buying today?
« Reply #764 on: October 16, 2014, 06:44:57 AM »
I just realized how much Priceline was down. I've looked into it in the passed but thought a good GARP price was 25x TTM. I'm looking back through their reports now.
96% Fixed Income CDs, Muni, Corporate Debt - 4% SPX Options

KCLarkin

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Re: What are you buying today?
« Reply #765 on: October 16, 2014, 06:53:36 AM »
I don't think you can gauge sentiment by the buying and selling activity here. Most members seem to ignore the macro  simply buy deals they like regardless. Maybe the sizing of the buys and sells changes - i know mine do- but  few people here try to call tops and bottoms

Of course. Nobody can call a top or bottom. Markets are too complex.

LowIQinvestor

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Re: What are you buying today?
« Reply #766 on: October 16, 2014, 07:24:23 AM »
IBM is a great call here. 10 PE and you know they are buying back shares hand over fist at these prices.

I think DTV merger arb is very attractive today!


Junto

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Re: What are you buying today?
« Reply #767 on: October 16, 2014, 07:50:30 AM »
I have been buying and now its my 2nd largest position TAXI. Very strong buy at these levels IMO.

Top positions (BAC, TAXI, AAPL, C, AIG)

BRK7

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Re: What are you buying today?
« Reply #768 on: October 16, 2014, 09:37:24 AM »
Interesting idea, Lance.  I suspect you bought due to discount to NAV which is presumably related to Gross' departure (even though Gross was not the manager of this fund).  But, aside from the discount, how do you feel about the prospects for the fund itself and future NAV growth?  As I understand it, the current PDI holdings are basically a leveraged portfolio of non-agency (low credit quality) mortgages. 

I note that Gross himself was buying as recently as Aug 21 @ $32.76.

Thanks.


PDI - PIMCO Dynamic Income Fund.

Thanks,
Lance
« Last Edit: October 16, 2014, 09:51:24 AM by BRK7 »

PatientCheetah

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Re: What are you buying today?
« Reply #769 on: October 16, 2014, 10:39:49 AM »
CBI
AIG warrant
« Last Edit: October 16, 2014, 10:58:22 AM by PatientCheetah »
risk as little as possible until all the stars have aligned

Longer Term: FB MSFT BABA JD YRD