19 Tips about Price

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In general, we’re not in the business of holding securities that are fully priced. If in our judgment the company’s valuation is appropriate for...
The latest trade of a security creates a dangerous illusion that its market price approximates its true value. This mirage is especially dangerous...
We still don’t believe long-term, market clearing oil prices have moved to a level substantially higher than $40. I know it sounds silly because...
The stock market is filled with individuals who know the price of everything, but the value of nothing.
Tags: price, value
Many LBOs are man-made disasters. When the price paid is excessive, the equity portion of an LBO is really an out-of-the-money call option. Many...
Tags: lbo, price
Many value investors are primarily focused on price and valuation, which we obviously think are important, but we also believe that when constructing...
One of the first questions we ask about a possible investment is “Why is it mispriced?” If you don’t have a reason, there’s a good chance it...
This is not at all to say valuation doesn’t matter, but there have been times I’ve been right about the trend but didn’t buy a leader because it...
You must buy on the way down. There is far more volume on the way down than on the way back up, and far less competition among buyers. It is almost...
We firmly believe no investment is so wonderful that it can’t be ruined by a too high entry price, so on our discount-to cash-flow stocks we will...
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