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Look through metrics


constructive
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Do you ever calculate the earnings, book value or other metrics for your holdings on a look-through basis? What are they now?

 

I did a rough calculation that my look through metrics are around 13x trailing earnings and 1.7x tangible book. This compares to approximately 16x trailing earnings and 1.3x tangible book for the CoBaF Fund, and higher numbers for the market. So I'm more earnings oriented and slightly less asset oriented.

 

Note, you should not be averaging the P/Es. Instead, average the yields (the inverse), and weight them by the size of position if desired. Then that can be converted back to P/E.

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I started tracking this with a spreadsheet a couple weeks ago after reading Buffett's letter about pension plans.  I am thinking that taking a look at this every 6 months or so and comparing to what it was in the past can give me something to check against  during market swings.  I have this little demon that shows up screaming "you're a genius!  quit your job!" or "you're an idiot!  just give up!" depending on where the market is.  I've figured out I can't kill him, but at least now I can show him this spreadsheet.

 

I think mine is around 60% book, 10x earnings.

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