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Wikinvesting since
Mar 2009
wikinvest Associate
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| earned | |
| Associate | rating |
| making 4 | edits |
| to 2 | articles |
| last edit 269 | days ago |
Warren Buffett’s long-time business partner Charlie Munger compares in his excellent book,Poor Charlie’s Almanack, success in the race track to success in the stock market:
The model I like - to sort of simplify the notion of what goes on in a market for common stocks - is the pari-mutuel system at the race track. If [...]
Let me start this blog with a little quiz:
In the following table you have two companies that are both growing at constant rate of 5% per year. These are very Buffett style companies: stable and debt free. Everything else equal, in which one would you invest?
Widget Inc.
Gadget Inc.
P/E-ratio (price per earnings)
10
10
P/B-ratio (price per book value)
5
0.5
Growth
5%
5%
If [...]
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