6 Stocks That Might Interest Value Investors
Still considered young, one would figure I would make constant trips to the local mall. After all, there’s a mall down the street from where I live, a shopping center about 5 minutes from that mall and if I head further south another mall. If I head north, another shopping center that’s only 3 minutes away. I have not started to mention if I head east or west. But despite this onslaught of malls and shopping centers I still manage not to buy clothes for 51 weeks. Why?
1 Week, 1 million Specials
Simple, during the last week of November that usually leads into December, there are tons of specials of going on. I’m not talking about a measly 5% off. I’m talking real discounts from Aeropostale (ARO), Old Navy(GPS), Sears?(SHLD),etc.. To put it in simple terms, I go crazy.
Not Really
I plan ahead. I usually save all year for this one week and do a closet inspection (whatever that is) to see how many jeans I need, shirts that went out of style, shoes that are missing the other pair,etc. Starting the third week of November, I usually start visiting my potential victim’s websites to see which shirts I will purchase that way once the specials come around (in this crappy economy i’m expecting big things), I start buying my bargains
Ok Get To The Stocks
The same could be said for stocks. Make a list, wait for the specials, go on a little shopping spree. A quick note, I do not own none of these stocks, but I do follow them because I know they are great businesses with some kind of moat and better than average management.
General Electric (GE, Financial)- That’s right, no longer a teenager. Its market cap is now below 100 Billion. I haven’t looked at it in some time, but I would be interested what kind of financial instruments it has on its balance sheet
Berkshire-Hathaway A&B (BRK-A)-Â $77,000. $77,000. $77,000. That’s below book value, but its hard putting a value on book these days. I remember a “guru” once said either Fairfax (FFH) or Leucadia (LUK) was worth 1.5x BV. If one uses a conservative book value for Berkshire Hathaway, we could arrive at some estimate of intrinsic value.
United Parcel Service (UPS, Financial)- Low $40’s. Shipments might be down, but I continue to ship and receive packages from those brown trucks. Plus, I love their whiteboard commercials.
Burlington Northern-Santa Fe (BNI, Financial)- Low $60’s. When Warren Buffett invests that much in a company, your ears should pop up, especially if you are a value investor.
Kraft (KFT, Financial)- Low $20’s.Another Warren Buffett stock. I honestly do not know why I even have it on the list. Its financial s look great, the business is boring, and management sounds confident they could spur growth.
Proctor and Gamble (PG, Financial)- Low $50’s. One of the most consistent companies for the past couple of decades. Another simple business producing large amounts of free cash flow in a very tough economy
Alex Garcia
www.contrarianvalueinvesting.com
Still considered young, one would figure I would make constant trips to the local mall. After all, there’s a mall down the street from where I live, a shopping center about 5 minutes from that mall and if I head further south another mall. If I head north, another shopping center that’s only 3 minutes away. I have not started to mention if I head east or west. But despite this onslaught of malls and shopping centers I still manage not to buy clothes for 51 weeks. Why?
1 Week, 1 million Specials
Simple, during the last week of November that usually leads into December, there are tons of specials of going on. I’m not talking about a measly 5% off. I’m talking real discounts from Aeropostale (ARO), Old Navy(GPS), Sears?(SHLD),etc.. To put it in simple terms, I go crazy.
Not Really
I plan ahead. I usually save all year for this one week and do a closet inspection (whatever that is) to see how many jeans I need, shirts that went out of style, shoes that are missing the other pair,etc. Starting the third week of November, I usually start visiting my potential victim’s websites to see which shirts I will purchase that way once the specials come around (in this crappy economy i’m expecting big things), I start buying my bargains
Ok Get To The Stocks
The same could be said for stocks. Make a list, wait for the specials, go on a little shopping spree. A quick note, I do not own none of these stocks, but I do follow them because I know they are great businesses with some kind of moat and better than average management.
General Electric (GE, Financial)- That’s right, no longer a teenager. Its market cap is now below 100 Billion. I haven’t looked at it in some time, but I would be interested what kind of financial instruments it has on its balance sheet
Berkshire-Hathaway A&B (BRK-A)-Â $77,000. $77,000. $77,000. That’s below book value, but its hard putting a value on book these days. I remember a “guru” once said either Fairfax (FFH) or Leucadia (LUK) was worth 1.5x BV. If one uses a conservative book value for Berkshire Hathaway, we could arrive at some estimate of intrinsic value.
United Parcel Service (UPS, Financial)- Low $40’s. Shipments might be down, but I continue to ship and receive packages from those brown trucks. Plus, I love their whiteboard commercials.
Burlington Northern-Santa Fe (BNI, Financial)- Low $60’s. When Warren Buffett invests that much in a company, your ears should pop up, especially if you are a value investor.
Kraft (KFT, Financial)- Low $20’s.Another Warren Buffett stock. I honestly do not know why I even have it on the list. Its financial s look great, the business is boring, and management sounds confident they could spur growth.
Proctor and Gamble (PG, Financial)- Low $50’s. One of the most consistent companies for the past couple of decades. Another simple business producing large amounts of free cash flow in a very tough economy
Alex Garcia
www.contrarianvalueinvesting.com
