Few weeks ago i`ve been told by a friend to buy 3 stocks:
FFH (Fairfax Financial) 2016 Performance: +16.8%
MKL (Markel) 2016 Performance: -4,77%
CLX (Clorox) 2016 Performance: +0,56%
With S&P 500 dow 8,46% it has been a wonderful deal.
Tonight, i saw Prem Watsa Portfolio: 85% of it is in 4 stocks, let´s see the performance so far in 2016:
BBRY: – 28,02%
RFP: – 44,52%
KW: -33,31%
IBM: -12,05%
I think a bit mysterious with such performance FFH stock outperform (big) the market.
Now Markel:
Thomas Gayner big position is KMX (CarMax): down 32% last year.
Markel 2016 P/E = 30,7 Markel 2017 P/E = 31,7 P/B: 1,40
Let´s compare that numbers with BRK.B (W Buffett stock):
BRK.B 2016 P/E = 16,3 BRK.B 2017 P/E = 15,3 P/B: 1,15
Let´s see Clorox Numbers:
CLX 2016 P/E = 26,1 CLX 2017 P/E = 24,5 P/B: 153
Let´s compare with KHC (Kraft Heinz) numbers:
KHC 2016 P/E = 25 CLX 2017 P/E = 20,2 P/B: 1,71
Lastly, let´s see the performance and current valuention about one stock Travis mentioneted last year: TGI (Triumph Group)
Performance 2016: -40,68%
TGI 2016 P/E = 7,73 2017 P/E = 4,26 P/B: 0,49
It´s in a sector (aerospace&defense) i like, with lot inside buying lately, and a new management. It´s hard to understand the current valuention. Like TGI i can speak here about many stocks trading below tangible book value like BAC, and LUK.
My point it´s that one day this inefficiencies will vanish. Jim Rogers told in a recent interview that some stocks never go down and he become to short this kind of stocks (AMZN, NFLX). I agree with him. FFH, MKL and CLX are good stocks with exceptional performance, but i cant buy it at current valuentions when Mr Market is giving me other stocks below tangible B/V that have reasonable future expectations.
Just making sense of this market :)))))))))))

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