06-09-2023, 09:30 AM
Warren Buffett has his wonderful companies at fair prices. I don’t I am at that stage so I focus on fundamentally sound companies at cheap prices.
My screen for fundamentally sound is to look for ROE > 10 % and cheap is when PBV < 1 for brick-and-mortar companies.
Packaging companies are certainly brick-and-mortar ones. There are over 20 odd Bursa packaging companies and a scattergram of ROE vs PBV shows the following.
![[Image: Packaging-ROE-vs-PBV.png]](https://i.postimg.cc/zfddDxg8/Packaging-ROE-vs-PBV.png)
For those who read my article yesterday of the PE vs PBV screen, I think the above scattergram is a better option.
Of course, these are screens and there is nothing like doing detailed analysis as per my New Toyo.
My screen for fundamentally sound is to look for ROE > 10 % and cheap is when PBV < 1 for brick-and-mortar companies.
Packaging companies are certainly brick-and-mortar ones. There are over 20 odd Bursa packaging companies and a scattergram of ROE vs PBV shows the following.
For those who read my article yesterday of the PE vs PBV screen, I think the above scattergram is a better option.
Of course, these are screens and there is nothing like doing detailed analysis as per my New Toyo.