Chapeau, Jim!
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Too soon! I was hoping both would continue to drift lower, so I could add at prices I didn’t have to think too much about. Well, that could still happen.
For me, one of the more difficult exercises in allocating capital is deciding which of several opportunities presents the best risk/reward proposition. Like many folks here, I’ve been nibbling on Google at these prices, but I’d like it better cheaper.
Too soon! I was hoping both would continue to drift lower, so I could add at prices I didn’t have to think too much about. Well, that could still happen.
Yes, bit of a drag!
I’d only added back half what I sold in the last toppy stretch.
Oh well. I went from 100% of the position size to 20% (selling on strength) to 60% (buying on dip).
Oh well, there’s always another fish in the sea for the patient person with a rod and reel.
Jim
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Oh well, there’s always another fish in the sea for the patient person with a rod and reel.
Jim
What about LKQ?
If I recall correctly Jim, you rather confidently mentioned this stock once, then there was no subsequent mention or discussion of it on this board.
This is how my brain rememembers your post:
“Hey Bruce, I’m giving you a secret hot tip. Just like I did with DLTR. LKQ is a great investment. You should load up on it and recommend it your entire family and friends”
Isn’t that what you posted?
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I missed out on DG when Jim recommended it several weeks ago and had been following it since. I had considered selling some puts but Jim had said recently if a stock is low enough just buy the security.
I pulled the trigger on Monday and caught the rebound. Lucky timing for me.
Thank you Jim
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I pulled the trigger on Monday and caught the rebound. Lucky timing for me.
Nicely done–it’s good to cultivate the habit of being lucky.
That’s far more effective than being smart or hard working.
If you can’t do any of those three, just cultivate patience.
Many of the things I’ve mentioned lately have done well.*
I’m not usually that prescient; everybody should definitely assume my next half dozen “name checks” will be dead wrong.
Jim
- Other than Carmax, but with yet more luck it’s merely “not yet”
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If I recall correctly Jim, you rather confidently mentioned [LKQ] once, then there was no subsequent mention or discussion of it on this board.
This is how my brain remembers your post:
"Hey Bruce, I’m giving you a secret hot tip. Just like I did with DLTR. LKQ is a great investment.
You should load up on it and recommend it your entire family and friends"
Well, I think the phrasing might have been a bit different : )
I said nice things about the company at the end of December when the price was $58.81.
" Price has soared lately, but earnings have soared more…valuation depends on whether the high level lasts."
https://discussion.fool.com/this-safe-withdrawal-strategy-shows-…
Then the price put in a short term bottom March 8 at $42.55.
Then I wrote about it a bit more effusively, and at greater length, April 26.
That’s the more interesting read.
…I suspect someone buying today (close $49.87 yesterday) and forgetting about it for a few years might be reasonably pleased.
The share price ought to double soon enough to make a fine annualized return.
Apologies for not having posted at the March lows : )
https://discussion.fool.com/kmx39s-pe-is-roughly-125x-if-the-ear…
Current price is $50.92.
I have mentioned it from time to time in the past.
The first time, very briefly, was in December 2018.
https://discussion.fool.com/for-mkl-fansgetting-far-cheaper-as-w…
Total return 24.0%/year in the 3.45 years since then.
EPS have risen almost exactly as much as the price in that stretch, so the P/E is pretty much unchanged.
Though earnings might be (?) somewhat above trend at the moment.
Jim
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Jim, it sounds like you think we’re in for a dip, not a prolonged bear market?
I have to admit I’m fully invested and just adding as an when funds come in. I’m in accumulation stage anyway for the next 20 years. I don’t care about drops I just buy stuff that I think is comparatively, attractively priced and sit.
Jim, it sounds like you think we’re in for a dip, not a prolonged bear market? …
I just buy stuff that I think is comparatively, attractively priced and sit.
I don’t really have a strong view.
The magic 8 ball says “Reply hazy, try again”.
Like you, I’m buying a couple of individual things just because it’s things I like at prices I like.
I expect them to be profitable if held until some future date that valuations are typical for them, no matter what the market does in the mean time.
Berkshire purchases usually make one reasonably happy reasonably soon when bought at (say) 1.32 times book instead of (say) 1.58 times book.
I don’t have a very strong expectation of the broad market movements right now.
Yes, I’ve checked every possible indicator including a few entrails, and they’re almost all bad.
(other than a short term bounce indicator which suggested the month starting ~May 12 is expected to be positive)
I am fully prepared for, and would not be at all surprised by, another big down leg at some point, perhaps even lasting a couple/few years.
But on the other hand, there is a lot of cash sloshing around, so a rally this year would also not shock me at all.
So, my motto is pretty basic:
Be prepared for anything, but don’t let that stop you from buying something good if it’s at an attractive price.
Jim
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Yes. I watched Charlie at the recent DJCO meeting and discussion about crazy market valuations etc and he said he’d just buy and sit on his hands.
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