I can understand one “second-guessing” a 20% or 30% drop. Now does it look like the market is right when prices drop almost 70%? Vanguard Windsor.) Citi, like most other financial institutions that survived, went on to be a great investment. Instead, it is a very good investment because the downside was low. Instead, what distinguishes value investors is their strategy–reasoning. Any value investor or contrarian investor can end up catching a falling knife or falling into a value trap, but a mistake with these deep-value investments is like falling into a pit filled with spikes. One of the main strategies that tries to capitalize on extremely depressed stocks is called deep-value investing. Synchro’s skeptical view can also apply to Seth Klarman (a master deep-value investor), Martin Whitman (master distress investor), and others. His view also applies to lesser-mortals like me and ContrarianDutch, who took a position in Ambac a few weeks ago. It’s kind of funny but I have the total opposite view from Synchro. So I can’t disprove Synchro for any of these stock picks. What Synchro says should be kept in mind but that should not preclude one from investigating individual picks.

Today we discuss this issue of mind capacity. Instead of investing in the “youth” who might have the capacity to earn the money to pay you back, you are investing in old people who not only DON’T work, but will die soon. So even if Washington Post went bankrupt, he would not have lost any money. The money left over at the end of the month went all into the investing account. Well, I think many of these beaten-down stocks are junk and the underlying companies may end up near-worthless as well. Well perhaps the media doesn’t trust people to know whether or not they actually have a job. William Ackman thinks that the asset value is much higher than the stock price but you need to do some work and come up with your own estimate as well. Do you need product development to know? It will help you to know the amount of time and efforts you will need to invest into the selling process of your automobile. When you have a set goal, you can always create an FD to get assured returns when the time comes.

Noida, India-based Paytm, which has over 200 million active users, will have to face WhatsApp, the Facebook-owned service that counts India as its biggest market. Buffett explained that the liquidation value of the firm was much higher than the market price. Here is a post from Dollars and Sense that explains much more in detail on the usage of the website. Let me explain my approach this way: Somebody said to me six months ago, how could I own Dell Computer and not Gateway because Gateway is a much better value? Someone asked why he he held Dell with P/E of 35 versus Gateway with a P/E of 12 and you can see Bill Miller’s strategies in his answer (I recommend this interview to anyone interested in Bill Miller. Today, we’re putting all the S&P 500 data we have to work for you just so you can answer questions like these!

Before working with any upfitting company, ask for their work experience in the industry. You’ll probably get paid AND (more importantly) get experience. A lot of the financial stocks in America have dropped 50% (or more) and are back to levels in early 2000’s. Is it worth investing in them? Q: Even though the price-earnings ratios of these tech stocks are soaring in the stratosphere? Bill Miller: P/E ratios by themselves are irrelevant. Although P/E ratios can be misleading at times, they do provide a good starting point for beaten-down stocks. Another risk with going after beaten-down stocks is that they can fall precipitously–often without any news or change in fundamentals. That is, if the price drops 20% or 30%, the market may be pricing in fundamentals. But if it drops 70%, the market may be irrational. I’m not saying that is the case for everything but I really believe that the market is far more irrational during stressful times than during normal times.