Value Investing News - USB - Comments

Portfolio Investment Risk

lo_toney — Thu, 20 Nov 2008 23:45:51 -0500

It is so critical for investors to realize the amount of risk in their portfolio. Most investors, even those who are sophisticated, are not familiar with the best methods to measure risk in the portfolio.

An easy way to measure investment risk is available through a new tool from Cake Financial called Investor Quick Check available at www.cakefinancial.com/investor-quickcheck

In less than 5 minutes, you can create an account, upload your brokerage information and have a detailed understanding of the risk in your equity portfolio relative to other investors with a similar style.

Buffett

bsdwork — Mon, 03 Dec 2007 14:07:29 -0500

Who is this Buffett guy ?:-? Well if he's so known, I've got a question for him: what does he think about unsecured loans?

Too much money!

JohannaBartley — Fri, 30 Nov 2007 12:00:43 -0500

Buffet is a smart man. A really smart man. I'm sure in the future his name will be in the same book with Nostradamus, Davinci, Napoleon...etc...I'm just curious if Warren owns some proprieties of the National Marine Engineers Beneficial Association. Oh well, we'll probably hear that he owns half of the moon or something.

Interesting perspective.

Nick — Thu, 16 Aug 2007 16:01:43 -0400

Interesting perspective.

I've been using

Jason — Mon, 04 Jun 2007 00:24:27 -0400

I've been using Morningstar's "Fair Value" estimates to help in analysis the last year or so, and so far, I don't know how impressed I am. Sometimes, I just get the feeling like, "where did they come up with these numbers?" I know they use a "proprietary" DCF valuation, but as a subscriber, I feel obligated to see numbers...

Regardless, good story.

USB Book Value

ogradybs — Sat, 21 Apr 2007 13:58:53 -0400

Should the current book value of USB (about 3) be a concern? I tend to shy away from banks with a BV over 2. USB's BV has an historical range of between two and three. I would be more enthusiastic if the BV was closer to 2.

I would prefer to use

random_walker — Tue, 10 Apr 2007 01:25:14 -0400

I would prefer to use private market or capitalization of earnings. This model seems to use multiple subjective inputs which could give rise to error in the output. May be you should try doing a sensitivity analysis by varying the subjective inputs into the model i.e. what if the high growth period turns out to be only 5 years instead of 10 and the stable growth period is only at 3%

Does Altucher now about Louis Simpson?

bingopitts — Mon, 02 Apr 2007 18:50:19 -0400

I don't think Altucher nows that Louis Simpson also works at brk. Many of Buffetts investments should be really credit or debited to Simpson. That is why I take alot of this talk of what is or isn't Buffett buying with a grain of salt.

US Bancorp has an ROA of

George — Sun, 01 Apr 2007 19:35:41 -0400

US Bancorp has an ROA of 2.23%. In regards to ROE, Buffett tends to emphasize ROE when he discusses all sorts of companies.

Great Model

TheMarleyGroup — Sun, 01 Apr 2007 03:10:10 -0400

The wide array of inputs that were taken into consideration in that model was pretty neat. Looks to be a well reasoned approach towards valuing the bank.

The Marley Group

I've read some brief

Mark Perkins — Sat, 31 Mar 2007 22:24:00 -0400

I've read some brief articles on USBancorp. I think I remember seeing how people put emphasis on ROE with USB. I don't understand how this is good for a bank. I remember reading, though I don't know enough on valuing banks that ROA is more important with banks. I believe Buffett has bought banks with ROA above 1% which is good for a bank I believe.

Model inputs

George — Sat, 31 Mar 2007 08:35:18 -0400

Hi Mr. Wallstreet,

Thanks for looking over my inputs. I should look at Barclays and Wells Fargo as well with this model once I get more confident with it.

I don't really like the ABN Amro merger. I'm not sure Barclays is really getting a good price. The one thing I do like about it is that it expands Barclays international reach pretty dramatically.

Delete is off for security

George — Sat, 31 Mar 2007 08:30:36 -0400

Delete is off for security reasons.

thats a cool model. I just

Mark Perkins — Sat, 31 Mar 2007 04:52:01 -0400

whoops accidental no delete availible?

thats a cool model. I just

Mark Perkins — Sat, 31 Mar 2007 04:50:02 -0400

thats a cool model. I just glanced at the inputs didnt check anything though. I was just looking at Barclays PLC ADR (BCS) keeping it simple in my analysis,right before i read this actually. current 5% div yield in 50's, 10% earnings yield possible growth of dividend given their history. If the dividend stays flat for 10 yrs from the dividends alone one gets a 4.15% return from div income. what I don't know is how the ABN Amro Advises merger will affect the companies balance sheet.