That other Buffett visited Daegu, and not only did he avoid commenting on the city’s apples or beautiful women, but he also said Korean stocks were still undervalued and the country was good place to invest.
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Jimmy would be hangin’ out w/ the free-spending lawmakers in Daejun. And Let’s Get Drunk and Screw would be playing on the karaoke machine.
Careful: Buffett said Korea would be a good place to invest in for the next 10 years, but not the next 10 weeks or 10 months. So over the long-term, follow Buffet’s advice, but I’m looking for short-term explosive growth. Short-term growth is in China (but not long-term growth, which is why Buffett doesn’t own a SINGLE Chinese stock, and compares China to the overrated dot.com bubble of 2000).
On another note, had Warren Buffet arrived a week earlier, I would be a much richer man right now, and I’d buy you a beer, Koehler. I cut my losses and sold all my posco shares just before he praised posco, sending the price soaring
I bought Posco at $43 almost two years ago and sold at $65 11 months later. Should of kept it…
Anyways. It doesn’t take a genius to see that POSCO was an absolute bargin. When I put money into it, it was trading at less than 4x EBITDA and its net income was 6x a share. Its competitors (Nippon Steel, Arcelor and US Steel) don’t have the profit and growth history that POSCO has, which are pretty stellar.
18 months ago, we’d call POSCO a “value” stock. However, at this time it is a “growth” stock as it’s pretty much hit all the value as the price has gone up faster then its earnings per share. It is now trading at 16x p/e, where the industry average is around 15x p/e. It may be valued at 18x p/e given that it’s probably the company that the super rich Indian/English dude at Arcelor Mittal (the world’s largest steel company) covents the most.
If you want it put money into POSCO, don’t expect a quick return like I got in 11 months, expect a long term hold, 3 to 5 years. It’s at $180 today. Don’t be suprised if it dips to $160 or less on profit sharing, etc. in the near term.
“profit sharing” I meant “profit taking”…