The Stingy News Weekly (08/12/02)
The Markets This Week
Since July 26:
DOW 30: 8,745 +5.82% with a median P/E of 26.5
S&P/TSX: 6,646 +5.32% with a median P/E of 28.6
The Value View
Dow at a P/E of 20: 6,600 (-24.5%) Poor Value
Dow at a P/E of 15: 4,950 (-43.4%) Fair Value
Dow at a P/E of 10: 3,300 (-62.3%) Good Value
S&P/TSX at a P/E of 20: 4,648 (-30.1%) Poor Value
S&P/TSX at a P/E of 15: 3,486 (-47.6%) Fair Value
S&P/TSX at a P/E of 10: 2,324 (-65.0%) Good Value
The Greedy Bunch
"Meet the 25 companies with the greediest executives. Of the big companies whose stocks dropped 75% or more from their boom-time peak, these are the ones where officers and directors took out the most money via stock sales from January 1999 through May 2002."
The best & worst boards in Canada
"Our survey finds 25 boards of directors designed to defend shareholders' interests, and 25 others that deserve to be asked some tough questions, like 'Which side are you on?'"
Get your Buffett fix
"The rest of the investing world is tiptoeing back into stocks, but Warren Buffett is on a roll. He's shelled out hundreds of millions of dollars in recent weeks to invest in half-dead telecom and energy companies."
Corporate directors see risks climbing
"Sitting on a company's board of directors used to sound like a cushy job - - lavish pay for little time, rides on the corporate jet, rounds of golf at first-class resorts. But now it's getting as perilous as sweeping out a minefield."
Computer buff follows value faith
The Globe's profile of Buffett follower and creator of The Toronto Investment Club website.
Asset allocation is key for retired chemist
Shakespeare's Globe & Mail profile. Check out his website for more info.
This week's trivia questions are:
Q1. Who said "We would rather buy 10% of wonderful business T at X per share than 100% of T at 2X per share."?
Q2. Who said "When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact."?
Q3. Who said "Too many accountants played footsie with stock-promoting managements by certifying earnings that weren't earnings at all."?
The answers to last week's trivia questions are:
Q1. Who said "You should invest in a business that even a fool can run, because someday a fool will."?
A1. Warren Buffett
Q2. Who said "Buy right and hold tight."?
A2. John Bogle
Q3. Who said "In the short run, the market is a voting machine but in the long run it is a weighing machine."?
A3. Benjamin Graham
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