I often speak about the great benefits of value investing. Patience is one of the key attributes of the craft.
For those of you who question the efficacy of value investing, here's one for you. Yesterday Sketchers (SKX) released their 3rd quarter earnings and blew the doors off on both revenue and earnings. I bought SKX in 2003 and 2011 with an average basis of 2.89 (split adjusted).
There were ups and downs like the high price spike several years ago and the debacle of the exercise sneakers. I held tight and the stock split 3 for 1. With the current last four quarters, the earnings were 1.61/shr. On my purchase price, this is a 1.9PE (2.89/1.61). That is a significant margin of safety! Plus, it moved up 3 times what I paid for it in one day (8.94/2.89).
The lesson is to buy quality companies with good management. Don't expect results overnight. While you MUST keep an eye on the long term results of management efforts, value investing really pays!
