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| Topic | Stock Topic 30 |
| red sox 777 06/14/21 2:25:21 PM #394: | Yeah there were lots of incredible deals last Spring. I'm really proud of our generation, by the way, for mostly rushing to buy that crash. People know how this game works this time! I saw a video of Warren Buffett describing his experience in the early 50s trying to sell stocks to people. He found a manager in an insurance company that was a very sound business and was trading at a P/E of less than 3. The manager believed in the business and had his career invested there, but he refused to buy the stock because he didn't trust stocks. Buffett explained that at a P/E of under 3, this was effectively lending money at a 35% interest rate even if there was no growth, but the manager just wasn't interested. Probably he or his family had lost a bunch of money in the Depression and he had gotten from that that all stocks are bad. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! ... Copied to Clipboard! |
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