It does make sense to do a lot of “due diligence” on any stock. You simply can’t beat homework for good investment results. However now and again you come across a stock and glance at the numbers, or even just a single fact about the stock and your mouth drops open and you have to buy it.
This happened to me recently and I’ll pass it along as a tip for you.
The call is purely down to cognitive dissonance, any idea that means to me, words don’t match the facts and hurt your head.
When you see something in the market it and it makes you hold you head and go “what!” then you are often on to something.
So this is my WTF stock tip and the best way to explain it is via a set of questions.
Q1. Who are apparently the smartest cookies in the world of finance?
Q2. Which financial companies alumni apparently and really do run many of the developed world’s most senior government posts, from Italy to our own Bank of Engalnd?
Q3. What company does Warren Buffet own a fat chunk of?
Getting warm?
Q4. What company would have a big uplift in its profits and therefore its market cap, if the markets are about to rock and roll again?
Q5. Which company is allegedly so clever, ruthless and powerful that it was called by Rolling Stone, “the vampire squid that wraps its tentacles around the face of the world and shoves its blood funnel into wherever it smells money?”
Got it?
Q6. Which company do conspiracy theorists think actually does rule the world?
Goldman Sachs of course.
Now you have the answer to the quizz the final question is:
What is the P/E of Goldman Sach?
Answer: 11.0
Its P/E is 11!
Do I need to say more?
A price of the Vampire Squid that rules the world only 11 p/e ????????????
Ahahahahahahha…………!!!!!!!!!
Yes please.