Hi everyone, thanks in advance for your time and advice.
So I've only started investing back in March and I am trying to gear myself towards a more value-investing approach. However, it seems the market is rather inflated right now and it's climbing to new ATHs. Even solid companies that are regularly recommended as safe bets such as $JNJ and $V are rather overvalued by just looking at their PExPB number.
For example, $JNJ's PE is 22.38 and their PB (from a quick look at their balance sheet) is 4.94, which yields a PExPB of 110.6. Using the same calculation, $V has a PExPB of 285.4. By Buffett's quick rule of thumb, he's looking for companies that are lower than 22.5 (PE <15 and PB <1.5).
If I put that criteria into Finviz, there are many companies that fit the rule but have other issues (namely GameStop and retailers that I don't think will exist in another 30 years). But there are companies that caught my eye such as $TECK and $MT that have great financials. What do you guys think about those two companies, and what do you think about value investing as an approach in such a bull market?
Thanks!
Submitted September 01, 2017 at 09:14AM by SantiClaws http://ift.tt/2guizya
