I just thought I would ask the same question over and over and over and over and over and over again. It seems to be the thing to do on this board.
Why do I refer to everyone else as "experts," when everyone knows I am the only real expert here?
Why doesn't uncle get this? Why doesn't he read the yahoo board (or does he...)?
Why is the sky blue?
Why is anything anything?
Why does uncle buy the stocks of businesses at a price that results in an initial rate of return of at least 15% when he could buy those that result in an initial rate of return of 11%?
He should listen to me.
Why doesn't he listen to me?
"They've recently changed either their model or their long standing inputs to the original model."
If you find out what changed regarding the model, I hope that you will share it with us.
Thanks for the reference.
"The one thing that unites everything I’ve been writing about in this paper is the golden rule of investing: no asset (or strategy) is so good that you should invest irrespective of the price paid. If when buying a house the mantra is “location, location, location,” when thinking about any investment (be it an asset or a strategy), the equivalent refrain should be “valuation, valuation, valuation.” We would argue that one of the myths perpetuated by our industry is that there are lots of ways to generate good long-run real returns, but we believe there is really only one: buying cheap assets."
Buffett recently bought XOM for ~$90.00 per share. What do you think XOM is currently worth? Did Buffett over pay?
Here is two more quotes from the white paper that I like.
"This raises the question as to why investors/people keep falling for the stories offered up by investment
"The moral of this story? Never underestimate the willingness of people to believe in the most outlandish of things if
it suits them."
"Still good advice, in my opinion, although, thanks to Ben, I would substitute the word cash for bonds today."
I agree with the cash over bonds approach right know.