A Quote by Henry Earl Singleton
It's good to buy a large company with fine businesses when the price is beaten down over worry about one problem.
Related Quotes
We say we are trying to buy into businesses with excellent economics, run by honest and able people at a decent price. We buy very few securities, so we look at it as "focused" investing.
When you buy enough stocks to give you control of a target company, that's called mergers and acquisitions or corporate raiding. Hedge funds have been doing this, as well as corporate financial managers. With borrowed money you can take over or raid a foreign company too. So, you're having a monopolistic consolidation process that's pushed up the market, because in order to buy a company or arrange a merger, you have to offer more than the going stock-market price. You have to convince existing holders of a stock to sell out to you by paying them more than they'd otherwise get.
The BP president said yesterday that the company would survive. That's like someone running over your dog and saying, 'Don't worry, my car is fine.'
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
A price drop in a good stock is only a tragedy if you sell at that price and never buy more. To me, a price drop is an opportunity to load up on bargains from among your worst performers and your laggards that show promise. If you can't convince yourself "When I'm down 25 percent, I'm a buyer" and banish forever the fatal thought "When I'm down 25 percent, I'm a seller," then you'll never make a decent profit in stocks.
I buy stocks when they are battered. I am strict with my discipline. I always buy stocks with low price-earnings ratios, low price-to-book value ratios and higher-than-average yield. Academic studies have shown that a strategy of buying out-of-favor stocks with low P/E, price-to-book and price-to-cash flow ratios outperforms the market pretty consistently over long periods of time.
There's no such thing as a value company. Price is all that matters. At some price, an asset is a buy, at another it's a hold, and at another it's a sell.
It's true that over-apologizing interrupts the flow of conversation and irritates the person who has to stop and offer reassurance, like, "No, it's fine, don't worry about it." But far greater than the challenge of toning down unnecessary "sorrys" is offering an apology when one is due.
You don't start a company because you want to be an entrepreneur or the fame and glory that comes along with it. You become an entrepreneur, and you create a company to solve a real problem. And by real problem, I mean a problem that is going to exist down the line.
London grew into something huge and contradictory. It was a good place, and a fine city, but there is a price to be paid for all good places, and a price that all good places have to pay.
One third of the economy goes through 'QuickBooks' in terms of businesses invoicing other businesses. Each invoice contains a connection between vendors, suppliers, and customers, and also the price of that connection. Representing the payment graph is huge opportunity and something no other company can do.
I think that the good thing about working smaller and being a smaller company that doesn't have to make as much to make money back is that you don't have to worry about, well, critics like this and they'll tell people to buy it, but millions of people might say, 'Oh, well I'm not interested in that subject matter' and we're sunk.
Edge also implies what Ben Graham....called a margin of safety. You have a margin of safety when you buy an asset at a price that is substantially less than its value. As Graham noted, the margin of safety 'is available for absorbing the effect of miscalculations or worse than average luck.' ...Graham expands, "The margin of safety is always dependent on the price paid. It will be large at one price, small at some higher price, nonexistent at some still higher price."
Almost everyone seems to worry about something, and yet, we rarely talk about worry as a problem. Maybe that is because worry is so integrated into the way we have come to live and be in the world that we don't even notice it.
If you have a company called x and today you feel the price is very high. Next year it could perform very well but the price may not perform. So in the stock market what happens is buy on the rumor, sell on the news.
So many businesses get worried about looking like they might make a mistake, they become afraid to take any risk. Companies are set up so that people judge each other on failure. I am not going to get fired if we have a bad year. Or a bad five years. I don’t have to worry about making things look good if they’re not. I can actually set up the company to create value.
Related Authors
Benjamin Disraeli Quotes
British
Celebrity
Bertrand Russell Quotes
British
Celebrity
Bobby Fischer Quotes
American
Celebrity
Fred Rogers Quotes
American
Celebrity
G-Eazy Quotes
American
Celebrity
Garry Kasparov Quotes
Russian
Celebrity
Gary Johnson Quotes
American
Celebrity
Jimmy Carter Quotes
American
Celebrity
Joe Buck Quotes
American
Celebrity
Jonathan Franzen Quotes
American
Celebrity
Ken Wilber Quotes
American
Celebrity
Kim Kardashian Quotes
American
Celebrity
Lord Chesterfield Quotes
British
Celebrity
Paris Hilton Quotes
American
Celebrity
Richard Simmons Quotes
American
Celebrity
Tom Petty Quotes
American
Celebrity