No. of Recommendations: 9
My usual rule of thumb is that you do nicely (average or better) if you pay less than 12 times the average EPS 5-10 years later ....... And you generally do very well if you pay no more than 10 times
...
And then regarding favourite stocks you mention only Alphabet? Because the poster limited it to "favourite stocks in the current top 10 most purchased by the Superinvestors".
Otherwise I think according to your own rule your list has to contain many more companies, like
BABA (deleted for reasons you repeatedly explained)
META (same)
KMX
VZ
PYPL
WRB
MKL
Simple enough explanation:
The question posted was about the top 10 on the link posted.
Most of your list aren't in their list, at least not in the default sort order I saw, which I think was number of buys.
The top 10 list at the link was:
META
MSFT
AAPL
GOOGL
CRM
GOOG
BKNG
PYPL
V
GNRC
A couple I don't know, a few fine firms I don't fancy at current valuations, one on my "don't invest" list.
And Alphabet.
Paypal did make it further up my watch list last summer.
There are certainly plenty of other good firms I like that aren't on that top 10 list.
Carmax is certainly one of them. The dollar stores, when they're at attractive prices.
But whether or not a firm makes it onto the "rule of thumb" list is primarily a function of the answer to the question:
What level or real earnings, average 5-10 years from now, am I "pretty darned sure" they'll achieve?
The world's economy has been teaching me for many years to be less than pretty darned sure about things.
I'm pretty darned sure Berkshire will still be around, and still making money.
Jim
