Recessions Bring Opportunity Value investors love recessions because they intelligently recognize that recessions bring opportunity. Many investors see recessions as great risks, but the true risk lies in how you react during the recession not the recession itself. The first rule of investing is to buy low in order to sell high. Recessions bring with …
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Drug Retail Stocks Their Valuation Is Intoxicating
Introduction – Drug Retail Stocks Even in today’s richly valued stock market, drug retail stocks are incredibly cheap. The oldest and perhaps most important adage in Wall Street is buy low to sell high. As much common sense as that adage makes, it turns out to be one of the most difficult things for investors …
Why A 15 P/E Ratio Is Fair Value for Most Companies: Part 2
Introduction To me, fair value, as it relates to common stock investments, is manifest when the current earnings yield provided by the company’s profits compensates me for the risk I am taking by providing both a realistic and acceptable return on my invested capital. Most importantly, as will be explained later, current earnings yield and …