The Stingy News Weekly (11/23/01)
The Markets This Week
DOW 30: 9,959.71 +0.94% to a P/E of 27.2
TSE 300: 7,432.43 +1.60% with a negative P/E
The Value View
Dow at a P/E of 20: 7,323 (-26.5%) Poor Value
Dow at a P/E of 15: 5,492 (-44.9%) Fair Value
Dow at a P/E of 10: 3,662 (-63.2%) Good Value
A Stingy Contest
Figure out how much the XYZ company is worth for a chance to win a copy of Jim Otar's new book "High Expectations and False Dreams: One Hundred Years of Stock Market History Applied to Retirement Planning."
Buffett: An FDIC for insurers
"I'm in the insurance business -- an expensive place to be in the past couple of months. It was made costly for Berkshire Hathaway, the company I run, because I did something very dumb: allowed Berkshire to provide insurance coverage for a huge catastrophe loss without its getting a premium for doing so. The risk we unthinkingly assumed was a loss from terrorism."
Good managers key to Buffett's acquisitions
"How to identify good corporate management? Despite the rhetoric of mutual-fund managers on this score, it's clear from the subpar investment results of most funds that it's an easier game to talk than play."
A four-letter word for regret
"When you buy a lamp, a chainsaw or a toaster, you're usually given ample warning about the potential hazards involved. Surprisingly, this isn't the case with mutual funds. When you buy a fund, nobody tells you in plain, straightforward language that you risk losing up to half your money."
Risk and expected return
"There is only one way to achieve spectacularly high returns like those achieved by US investors in the latter half of the last century-you must start out with the price of assets at very distressed levels, and end up with them at very elevated levels."
The gift you give yourself
"2001 may be the best year in memory to save on taxes, especially for those who make the right financial moves before Dec. 31. Investors, entrepreneurs and simple taxpayers all have year-end strategies available to keep more cash in their pockets and put less in Ottawa's."
The trivia questions this week are:
The answers for last week's trivia questions are:
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