Wednesday, February 13, 2013

Mistakes and Graham Price

Hello Freaks!

In this process of getting richer we are bound to make mistakes. Everytime I make one, I tell myself : "you're an idiot, stop doing these rookie mistakes". But I will do it again (not always, but sometimes).

The list is now getting bigger. But I don't mind it that much. You can't control what's done. I try to remain focus on what's coming instead. I know that's pretty tacky stuff, but it's true! (don't be so stuck up -- geez...)

Here's my top five of mistakes (there is no order) :

  • Selling my three Apple shares at 120 $ (and buying only three freakin' share; what's that!). I don't want to know how much it is worth now. OK, I know!...
  • Selling my SNC-Lavalin 50 shares just because the CEO was being handcuffed on TV! (that was shocking though). What did I learn from Lynch, Buffet and so on : stick to your guns if the company is good. What did I do : I sold them like a bandit on the run! It's a pity because I had the great impulse of buying those shares while on the downslide thinking it was a great opportunity...
  • Selling my Rogers Communication 200 shares bought at 34 $ because I thought the market would come crashing the day after. I take full responsability for this dumb ass move, but I was badly influenced by people around me (I won't mention my girlfriend nor my father in-law, no no...)
La morale de l'histoire? : you are bound to make mistakes, no matter how hard you try, how much you read and how convinced you are in your strategy. We are human, and human are also very much driven by emotions. Otherwise we wouldn't 5 billions on this planet!

Graham Price

Thanks for nothing by the way. No one helped me in the least. I had to do research on Google, imagine that!

Anyway, to calculate the Graham Price you follow this equation: square root of EPS*BVPS*22.5

Don't ask for more! And the Zweig part is different... and I still couldn't figure out why he brought it up!

The important part is this one : Power Corporation (POW) is a buy at less than 32 $ (it's 26 $ right now) and has a yield of over  close to 5%.  Go get it now! Now!

This is a fantastic company: diversified and all. I know it's my holding and I preach for my Parrish, but its true.

Not to mention Barrick Gold and Suncor.

Three of my most important holdings are bargains according to Graham Price. What are you waiting for!


No comments:

Post a Comment

Thanks a lot for your comment.