The Intelligent Investor: The Definitive Book On Value part 7 doc

... shares. 2 Since the market value of these issues is well above their book value say, 900 market vs. 560 book in mid-1 971 the earnings on current market price work out only at some 6 1 ⁄4%. (This relation- ship ... “consumer prices.”) The only way that inflation can add to common stock values is by raising the rate of earnings on cap- ital investment. On the basis of t...

Ngày tải lên: 04/07/2014, 15:20

... 330 COMMENTARY ON CHAPTER 13 339 14. Stock Selection for the Defensive Investor 3 47 COMMENTARY ON CHAPTER 14 3 67 15. Stock Selection for the Enterprising Investor 376 COMMENTARY ON CHAPTER 15 396 16. Convertible ... Acquisition of Sharon Steel Shares 576 7. Technological Companies as Investments 578 Endnotes 579 Acknowledgments from Jason Zweig 589 About the Authors Credi...

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... for the possibly quite dif- ferent conditions of, say, 1 973 –1 977 . 8 Introduction Commentary on the Introduction 13 Graham will show you how to manage it—and how to get your fears under control. ARE ... over the years as has the general market. Allied to the foregoing is the record of the published stock-market predictions of the brokerage houses, for there is strong ev...

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... in bonds, as a form of insurance against deflating prices. THE MONEY ILLUSION There’s another reason investors overlook the importance of inflation: what psychologists call the “money illusion.” ... in the stock basket, despite the prospect of continuing inflation. The more the investor depends on his portfolio and the income therefrom, the more necessary it is for him to...

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... counsels—in favor of a consistent and controlled common-stock policy on the one hand, and discouraging endeavors to “beat the market” or to “pick the winners” on the other. Nonetheless we think our ... about the stock market in the long run, the more certain they are to be proved wrong in the short run. On March 24, 2000, the total value of the U.S. stock market pe...

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... complicated; the hard part is to adopt it and to stick to it not to mention the possibility that it may turn out to have been much too conservative. The Bond Component The choice of issues in the bond ... The Series H bonds pay interest semi- annually, as do other bonds. The rate is 4.29% for the first year, and then a flat 5.10% for the next nine years to maturity. Intere...

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... regard them as the lesser of two evils the greater being the risks attached to an all-bond holding. Rules for the Common-Stock Component The selection of common stocks for the portfolio of the defensive investor ... below the yield on bonds. * See pp. 56– 57 and 88–89. † For another view of diversification, see the sidebar in the commentary on Chapter 14 (p. 368). age...

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... in January 1965 to 7% in June 1 970 . Their price index declined, corre- spondingly, from 110.8 to 67. 5. In mid-1 970 the yields on high- grade long-term bonds were higher than at any time in the nearly 200 ... 204–205. protection plus a chance to benefit from an advance in the price of the common. This may be a good place to make a suggestion about the “long- term bond of the...

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... forecast of the future—with par- ticular emphasis on the next 12 months—and a rather arbitrary conclusion. The latter was, and still is, often drawn with one eye on the stock ticker or the market ... here, which is that the mathematical valuations have become most prevalent precisely in those areas where one might consider them least reliable. For the more dependent the va...

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... financial condition. The second part of the analysis should consider to what extent the value based solely on past performance should be modified because of new conditions expected in the future. Such ... effect on the attitude and the labors of the security analyst. More so than in the past, the progress or retrogression of the typical company in the coming deca...

Ngày tải lên: 04/07/2014, 15:20