Tag Archives: Full Metal Jacket

A Reader’s Question: What Should I Pay for Salesforce.com (CRM)?


A question like that makes me into a religious man, “What the $%^&!, God $%^& Damn %^&@# It, Jesus the $%^&*! Christ!


My answer: OK, instead of asking, “What is it worth?” Ask, what would need to happen if I paid today’s price of $169 and required a 10% annual return? What would CRM need to provide to me (sales, cash flows and margins), the investor, over the next ten years?  What does the current price for CRM infer?

Does someone wish to answer this for the reader? Here is the Value-Line: CRM. The best volunteer gets an emailed prize.  I will reply in full next week.

Go here for remedial work  on what you need to learn: http://www.oldschoolvalue.com/blog/investing-perspective/value-investor-accounting-writing/

You could make money but this would have to happen first:


But if you ask the same type of question again then:



Learning: The Importance of Studying History

The Best Way to Learn?

Is this the best way to learn? Turn up the volume and watch the 61 second video


Immediate feedback is the best way to learn in a command and control situation. If you make a mistake in war, you may endanger your comrades.  Gomer Pyle’s error received swift punishment—slaps across the face. The sergeant may be harsh, but he is effective.

Investing is a more complex endeavor. You may act improperly (buy a stock after Cramer recommends it on CNBC) and make a profit, but lose money in the short-run while executing the proper process. One way to improve your perspective and discipline is to study history. You need a theory to place historical facts into a coherent understanding of reality.  If not, you could end up in hell like Mr. Alan Greenspan testifying before Congress in 2008. Go here and click on minute 49.30 (49th minute, 30th second).

Greenspan in hell http://www.pbs.org/wgbh/pages/frontline/warning/view/

Mr. Greenspan admits that his “model” of reality had a “flaw” in it.  He can barely speak cogently. Gee, I wonder why we are in a mess now. The entire video is worth watching but here again without a theoretical grasp of what causes booms and busts you would be persuaded that derivatives and their lack of regulation were the main causes of the crisis. Derivatives were  a tool used to hide or magnify leverage, but they were not the cause of the crisis. That is like saying machine guns cause murder. No, people who commit the crime using guns cause murder.

Death Therapy

It is too late for Mr. Greenspan. The solution for him is Death Therapy, a guaranteed cure:


You, the reader, have other options. Download A Study of Market History below:


I hope you begin your history lessons.