Monday, March 5, 2012

A mainstream confirmation of what we all knew, about pricing

Just a note to share for the interested, as this idea goes main stream:

and of course there is this one

and then the site which does the math

and as the markets toddle about on their insane course we will be posting some stuff later this week.


1 comment:

james said...

When you buy a stock like Wallmart Mcdonald's or Apple computer or Wallgreens you are buying very good well run companies. But because of the popularity of these stocks they are not great value investments. The vast majority of your gains when you buy these stocks comes from dividends not captial gains. In other words when you are investing in a very popular mature company most if not all of your gains comes from your dividends. To get lots of potential capital appreciation from your stocks you must look for companies that are out of favor and not as widely followed as these very very high profile blue chips.