Mr. Market never ceases to amaze
Mr. Market, a remarkably accomating fellow, will sell you his share of IBM for a little over 12x last years earnings, and about 10.5x this years EPS estimates.
The S&P 500 is priced around 17x earnings.
Go look at IBM's the beautifully consistent growth and insane profitability over the past deacde.
The company had an ROE of 85% last year for cryin' out loud!
Now, ask yourself, should a company this wonderful be selling at roughly a 25% discount to the market?
Remeber the wise man who said "I don't look to jump over 7-foot bars: I look around for 1-foot bars I can step over."
Long IBM, and BRK.B