Perhaps more than anything else, the theme here on this site is that great things can happen to your financial life if you can separate the headlines and stock prices from the actual business performance of the company, and then methodically strike when an opportunity arrives for you to take advantage of the low prices in the moment.
I’m not just interested in this stuff in the abstract; I like to focus on real, specific companies and discuss what it means to be a value investor in real time. Over on Seeking Alpha, I have written about how value investing in this day and age takes you in the direction of the ultimate hold-your-nose stock Citigroup, as the company’s book value is $65 per share and the current stock price is in the $40s. Because banking stocks inevitably end up trading at premiums (premia?) to book value, you can … Read the rest of this article!