valuation and other comments
Hey gang,
I decided to do a valuation based on the dividend (0.10) alone.
I used a 2% discount rate (inspired by Buffett) since that is an approximate return
we can have nearly 100% confidence in, from something like a T-bill.
I won't pretend to be rock solid on the math, but the end numer is basicallyl $5.00/share.
Google "DCF moneychimp" for more details about the math.
My assumption is that the divident is rock solid. I'm sure I'm being conservative because it is likely that the dividend will slowly increase.
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In other news....
I wanted to be tough on myself for not buying shares at the $1.25 level. Surely that was the moment to buy. Maybe. Call it cowardice, call it what you will. All I can say is that I've already got 40K invested in Torstar, and I just don't feel comfortable averaging down anymore. I guess this is where the deep pockets would be useful. I actually do have very deep pockets...because they all have holes in them.
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I thought I read somewhere something about there being a 10 day post-announcement wait period before an entitiy in FFH's (Fairfax) position can do "big move" stuff. By this vague notion, we are at day 8, and something big should happen within 5 days???
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Let's say something biggish happens (shareprice continues to ascend). Such a move does not mean it is time to sell! I feel like we're all just waiting for the slightest reason to jump ship!
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Does anyone have an idea of FFH's average price?
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Well, that's it for now!