Author Topic: What are you buying today?  (Read 2198012 times)

randomep

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Re: What are you buying today?
« Reply #770 on: October 16, 2014, 10:47:37 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

Well, I meant and I think you can guage by comparing this thread with the "what are you selling today" thread. There is nothing there!


randomep

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Re: What are you buying today?
« Reply #771 on: October 16, 2014, 10:50:29 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.

I think your statement applies if we have capitulation. Maybe it was true in 2009 march, but on any random dip, the actions of this thread is not the cause of the market level.


tombgrt

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Re: What are you buying today?
« Reply #772 on: October 16, 2014, 10:59:37 AM »
Nothing today, hoping the US markets go a little further than a lousy 10% decline!

Rainforesthiker

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Re: What are you buying today?
« Reply #773 on: October 16, 2014, 11:49:56 AM »
Been steadily buying GM-B warrants over the past week
bought some EZPW in the last few days (EZ Corp)
bought some Mastercard and Visa
The key question:  What is the "inefficient rationale" - the reason the market is mispricing the stock.  Why doesn't the powerful force of the wisdom of the crowd manifest here to produce the correct price?

Liberty

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Re: What are you buying today?
« Reply #774 on: October 16, 2014, 12:11:50 PM »
bought some Mastercard and Visa

Hi. If I can ask, how do you think about valuation, especially for MA?

randomep

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Re: What are you buying today?
« Reply #775 on: October 16, 2014, 12:20:05 PM »
Nothing today, hoping the US markets go a little further than a lousy 10% decline!

ya, well I was kicking myself for not getting in last may, I don't want to repeat that mistake again.


AzCactus

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Re: What are you buying today?
« Reply #776 on: October 16, 2014, 12:40:35 PM »
There are some stocks that seem pretty cheap.  But in terms of using this board as a proxy (which was mentioned above)---I think that's a bit of a mistake.  Most people on this board probably consider themselves value investors---however two different people could have completely independent approaches and still garner good results. As an example Charlie Munger ran an EXTREMELY concentrated portfolio and Walter Schloss ran a VERY diversified portfolio.  However, in retrospect investing with either of those guys would have been a great decision.


yadayada

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Re: What are you buying today?
« Reply #777 on: October 16, 2014, 12:46:35 PM »
bought some Mastercard and Visa

Hi. If I can ask, how do you think about valuation, especially for MA?

take 4 billion of earnings and let them grow like 15% a year. There is a little bit of operating leverage. Marketing for example seems mostly fixed. And SG&A grows much slower then revenue in past years.  So if revenue grows 10-12% a year, earnings could easily grow at least 15 and potentially 20% a year.

So I guess it is hard to do worse then 10-15% a year long term on MA.

oddballstocks

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Re: What are you buying today?
« Reply #778 on: October 16, 2014, 12:47:13 PM »
bought some Mastercard and Visa

Hi. If I can ask, how do you think about valuation, especially for MA?

I own MA, and have owned since a month or two after the IPO.  This is one of my few 'moat' companies.  I am just holding on tight.  Valuation might be stretched now, but if you think out 10 years the world will be increasingly digital vs cash based.  MA is going to benefit from this.

I prefer MA over V because MA includes Europe whereas Visa does not.  Is this an incredible value play, maybe not here, but I think I'll be happy in 5-10 years verses where shares are at now.
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tombgrt

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Re: What are you buying today?
« Reply #779 on: October 16, 2014, 01:04:08 PM »
bought some Mastercard and Visa

Hi. If I can ask, how do you think about valuation, especially for MA?

I own MA, and have owned since a month or two after the IPO.  This is one of my few 'moat' companies.  I am just holding on tight.  Valuation might be stretched now, but if you think out 10 years the world will be increasingly digital vs cash based.  MA is going to benefit from this.

I prefer MA over V because MA includes Europe whereas Visa does not.  Is this an incredible value play, maybe not here, but I think I'll be happy in 5-10 years verses where shares are at now.

What do you mean by this? I think I misunderstand you as my credit card is from Visa. We have both here?

Nothing today, hoping the US markets go a little further than a lousy 10% decline!

ya, well I was kicking myself for not getting in last may, I don't want to repeat that mistake again.



I wouldn't call that a mistake. No called strikes right?

Generally for me it's a mistake to do anything so I try to be patient.  ;D I have bought but just not that much. I'd prefer to be at least a little fearful before buying a lot more. A mere 10% move up (or down) shouldn't really change my decision to buy or sell anything.