Penguin International

[karlmarx]

I briefly read a few posts on Penguin over the past years, but I was never attracted to the discussion. No particular reason why. Anyway, it wouldn't have been as enjoyable if I were to read a few posts a day over a few years.

I think that P/E as a tool will better serve investors if it is understood as price / long-term earning ability; not just the earnings of the last 12 months. Of course, being able to determine a business' long-term earning ability is not so simple. An average of the past, coupled with some consideration for its outlook, is normally what I do. How long is 'long-term?' It is as long as you are willing to hold the stock.

The old-colourful-animal-forumer you speak of is indeed a value investor. From his unwavering contrarian view, his reasons for his contrarian view, his portfolio, and his reasons for choosing those stocks in his portfolio, I can tell that investing will continue to be a financially rewarding activity for him. It is clear that he knows what he is doing.

Anyway it's not nice to discuss about others. But I do hope that one day my stocks get such a large following as well.