The comments about analysts chasing sentiment are really valuable. I often pay no attention to analyst price targets for precisely this reason - they seem to change their target AFTER the market has moved but with no change in fundamentals, I.e. between earnings calls or some time after interest rate, tariff declarations, etc. They seem to follow the market and are therefore useless to me for assessing value.
I would personally rather the analysts just stated the fundamental value, even if that meant they ended up quite far removed from reality. But you could argue that is equally useless :)
Dollar general @ 19 Apr 2025
P/E (Core Intrinsic)
= 15.9÷3.356
= 4.7377830751
Basically :
We sell when it is too overvalued.
We buy when it is too undervalued.
Basically, Everyone knows.
Lots of good advice! Thank you, Jimmy!
Thank you, DIY!!!
I think this is a really good post, thank you.
The comments about analysts chasing sentiment are really valuable. I often pay no attention to analyst price targets for precisely this reason - they seem to change their target AFTER the market has moved but with no change in fundamentals, I.e. between earnings calls or some time after interest rate, tariff declarations, etc. They seem to follow the market and are therefore useless to me for assessing value.
I would personally rather the analysts just stated the fundamental value, even if that meant they ended up quite far removed from reality. But you could argue that is equally useless :)
Thanks for sharing your experience! One question) Why did you leave the position?
Thank you very much, Dan!
It was a combination of factors, but I'll list the main ones:
1. Living in the capital and working in the financial market can be quite stressful. I needed a break.
2. The stock market in LatAm has been extremely challenging, with no clear signs of improvement for the past 3–4 years.
3. I received an irresistible offer to join a company in my hometown. In my free time, I decided it was worth starting my own investment consultancy.
Thank you, and good luck! By the way, are you still working in finance?
Thank you!! Of course, as an independent consultant.
I didn't understand absolutely anything...