Large cap American value stock that I own is Comcast. Good valuation with two important catalysts for growth: opening of the Epic Universe park in May and spin off of the cable business later this year.
Currently the P/E is 8.5 which is much lower than usual. It’s been up and down but in 2022 P/E was up to 27x. It has to do mostly with negative sentiment around cable cutting and the internet bundles facing competition from Starlink/satelite providers. Cable will be spun off while I think competition from satelites is overblown in the short to medium term. Finally I think the entertainment business is very undervalued. A P/E of 15-20 is a fair valution imo. Extra bonus: The dividend yield is around 3,5% currently with 8% growth rate easily covered by a 32% pay out rate + consistent buybacks.
Reg. Berkshire as a defensive position: Why do u expect to sell it? Do you believe a recession is coming in which case it should crater less than the market and you would sell to funnel proceeds into sth. more undervalued with more 'tork'?
As sb. said: quality names have nothing to recover from but lower quality names rally the most in an (industry) recovery. (If nobody said or wrote it it was me)
I used to like Berkshire as a defensive and undervalued stock. It used to be my largest position. Now it is still defensive but not really undervalued anymore. Looking for a company which is both again.
I do not have a crystal ball on recessions. I do think that the US market is quite frothy.
You've always got to be happy with 15% mate. I think any positive returns for value investors are to be applauded given how wacky the market is getting. I'm thinking Europe will be a pretty smart place to be overweight soon.
Large cap American value stock that I own is Comcast. Good valuation with two important catalysts for growth: opening of the Epic Universe park in May and spin off of the cable business later this year.
Have not looked at Comcast in a while. What do you think it is worth?
Currently the P/E is 8.5 which is much lower than usual. It’s been up and down but in 2022 P/E was up to 27x. It has to do mostly with negative sentiment around cable cutting and the internet bundles facing competition from Starlink/satelite providers. Cable will be spun off while I think competition from satelites is overblown in the short to medium term. Finally I think the entertainment business is very undervalued. A P/E of 15-20 is a fair valution imo. Extra bonus: The dividend yield is around 3,5% currently with 8% growth rate easily covered by a 32% pay out rate + consistent buybacks.
That Fonterra investment was outstanding.
Reg. Berkshire as a defensive position: Why do u expect to sell it? Do you believe a recession is coming in which case it should crater less than the market and you would sell to funnel proceeds into sth. more undervalued with more 'tork'?
As sb. said: quality names have nothing to recover from but lower quality names rally the most in an (industry) recovery. (If nobody said or wrote it it was me)
I used to like Berkshire as a defensive and undervalued stock. It used to be my largest position. Now it is still defensive but not really undervalued anymore. Looking for a company which is both again.
I do not have a crystal ball on recessions. I do think that the US market is quite frothy.
You've always got to be happy with 15% mate. I think any positive returns for value investors are to be applauded given how wacky the market is getting. I'm thinking Europe will be a pretty smart place to be overweight soon.
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