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Rainbow 
MM@287

The most important question raised recently was the sustainability of MM business.

Given that MM did not have any IP, Patents or proprietary material science, it is pretty clear that MM does not have concrete/visible moat.

And, of course, if MM does not have moat, then given times, it's competitor(s) will catch up and hence erode it's business.

This is a really important question to decide whether to hold MM long term or take profit - since it's valuation seems expensive and of course, there is nothing wrong in taking profit.

Agree?

With such a wonderful cool weather, enjoy:


Stay home and stay safe, everyone.
Heart
Reply
Rainbow 
MM@287

The most important question raised recently was the sustainability of MM business.

Given that MM did not have any IP, Patents or proprietary material science, it is pretty clear that MM does not have concrete/visible moat.

And, of course, if MM does not have moat, then given times, it's competitor(s) will catch up and hence erode it's business.

This is a really important question to decide whether to hold MM long term or take profit - since it's valuation seems expensive and of course, there is nothing wrong in taking profit.

Agree?

With such a wonderful cool weather, enjoy:


Stay home and stay safe, everyone.
Heart
Reply
Rainbow 
Jan 2021 Howard Mark
https://www.oaktreecapital.com/docs/defa...-value.pdf

Page 9
the most important intention of this memo is to explore the mindset that I think will prove most successful for value investors over the coming decades, regardless of what the market does in the years just ahead.

It's important to note that
(a) the potential range of outcomes for many of today's companies is very wide; and
(b) there are considerations with enormous implciations for the ultimate value of many companies that do not show up in readily available quantitative metrics.  They include superior technology, competitive advantage, latent earning power, the value of human capital as opposed to capital equipment, and the potential option value of future growth opportunities. 

In another words, determining the appropriateness of the market price of companies today requires deep micro-understanding, and that makes it virtually impossible to opine on the valuation of a rapidly growing company from 30,000 feet or by applying traditional value parameters to superficial projections.

The key, as always, is to understand how today's market price relates to the company's broadly defined intrinsic value, including its prospects.




I couldn't felt more appreciative by waking to today to a cool weather with such an excellent memo from fellow valuebuddies.

Thank you, really appreciate.

As we plow thru all the literature of MM, it is clear that there is not know IP, Patents, proprietary material science which allow it to keep its moat.

However, it's breakthru in biz segments,  financial results, increasing cash flow, coupled with growing dividend and management acumen, had given us sufficient comfort that this is a company that build to last.

Is it?

Stay home and stay safe, everyone.
Heart
Reply
Rainbow 
Jan 2021 Howard Mark
https://www.oaktreecapital.com/docs/defa...-value.pdf

Page 9
the most important intention of this memo is to explore the mindset that I think will prove most successful for value investors over the coming decades, regardless of what the market does in the years just ahead.

It's important to note that
(a) the potential range of outcomes for many of today's companies is very wide; and
(b) there are considerations with enormous implciations for the ultimate value of many companies that do not show up in readily available quantitative metrics.  They include superior technology, competitive advantage, latent earning power, the value of human capital as opposed to capital equipment, and the potential option value of future growth opportunities. 

In another words, determining the appropriateness of the market price of companies today requires deep micro-understanding, and that makes it virtually impossible to opine on the valuation of a rapidly growing company from 30,000 feet or by applying traditional value parameters to superficial projections.

The key, as always, is to understand how today's market price relates to the company's broadly defined intrinsic value, including its prospects.




I couldn't felt more appreciative by waking to today to a cool weather with such an excellent memo from fellow valuebuddies.

Thank you, really appreciate.

As we plow thru all the literature of MM, it is clear that there is not know IP, Patents, proprietary material science which allow it to keep its moat.

However, it's breakthru in biz segments,  financial results, increasing cash flow, coupled with growing dividend and management acumen, had given us sufficient comfort that this is a company that build to last.

Is it?

Stay home and stay safe, everyone.
Heart
Reply
Rainbow 
the (singapore) intelligentinvestor
[Image: Screenshot%2B2021-01-03%2Bat%2B2.36.35%2BPM.png]

One of our valuebuddies starting to buy MM since 2017.
For those who following him will know that he did a lot of study on those stocks before he vested.

For those who did not, you could simply digest his posts by reading his annual report (instead of blogs):
http://theintinv.blogspot.com/2021/01/20...-2020.html

In his last week FY2020 report, I find that his assessment of current market relevant and it's a good gauge for us, moving forward.

The current market is very peculiar. We have some sectors in the negative as expected as we are in a serious pandemics situation. But there are some sectors performing as if we are in a bull market! Earnings don’t seem to be important for companies in the technology sector with products in AI, cloud computing, e-commerce, medical protection products or block chain technology etc. 

Speculation in the stock market is trading with the aim of making profit by stock prices actions which is driven by market sentiment. The key is not the company earnings but is that someone else to buy from them at a higher price. Some of them actually think that they are value investors when they applied some fundamentals mixed with some technical indicators before buying. I feel this group is at a higher risk than those who know they are speculating.

When I first studied the book Security Analysis by Benjamin Graham, one of his advice was never to overpay for any securities, the highest PE he suggested was 25. But in the current environment, hardly any attention is paid to the earnings. Some have PE ratio in the hundreds and even in the thousands, and some are losing money for years but yet their stock prices keep soaring even when the economy is stalling. 


waking up to another fantastic cooling day, I wish all valuebuddies an excellent catch.
Enjoy The Weekend - Blinding Light:


Stay home and stay healthy, everyone.
Heart
Reply
Rainbow 
the (singapore) intelligentinvestor
[Image: Screenshot%2B2021-01-03%2Bat%2B2.36.35%2BPM.png]

One of our valuebuddies starting to buy MM since 2017.
For those who following him will know that he did a lot of study on those stocks before he vested.

For those who did not, you could simply digest his posts by reading his annual report (instead of blogs):
http://theintinv.blogspot.com/2021/01/20...-2020.html

In his last week FY2020 report, I find that his assessment of current market relevant and it's a good gauge for us, moving forward.

The current market is very peculiar. We have some sectors in the negative as expected as we are in a serious pandemics situation. But there are some sectors performing as if we are in a bull market! Earnings don’t seem to be important for companies in the technology sector with products in AI, cloud computing, e-commerce, medical protection products or block chain technology etc. 

Speculation in the stock market is trading with the aim of making profit by stock prices actions which is driven by market sentiment. The key is not the company earnings but is that someone else to buy from them at a higher price. Some of them actually think that they are value investors when they applied some fundamentals mixed with some technical indicators before buying. I feel this group is at a higher risk than those who know they are speculating.

When I first studied the book Security Analysis by Benjamin Graham, one of his advice was never to overpay for any securities, the highest PE he suggested was 25. But in the current environment, hardly any attention is paid to the earnings. Some have PE ratio in the hundreds and even in the thousands, and some are losing money for years but yet their stock prices keep soaring even when the economy is stalling. 


waking up to another fantastic cooling day, I wish all valuebuddies an excellent catch.
Enjoy The Weekend - Blinding Light:


Stay home and stay healthy, everyone.
Heart
Reply


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