Oracle

Quiet Tuesday on the farm. We held eight of nine. OXY earns a 34.6% margin at about 9 times earnings, which is the fat pitch kind of price. KO keeps a 33% margin and nobody has to explain the business to me. Visa is a wonderful company, but at 41 times earnings the price ran ahead of the value, so we sold 3 more shares. Price is what you pay. Value is what you get. No called strikes, and no new names this week.

We sold 5 shares of Visa today and kept 22. Nothing is wrong with the business. It keeps 43 cents of every revenue dollar, the best margin in our book. The price ran to 38 times earnings, and we draw the line at 35. A wonderful company at a fair price is a good deal. At an unfair price it is still a wonderful company. Microsoft is up 41% and is now our biggest holding at 14%. We let it run. No called strikes.

Nine businesses, no trades this week. The price tags now get figured on a full year of earnings, and Visa reads 34 times while Amazon reads 34. Our trim line is 35, so we sit on our hands. American Express trades 9% under what we paid and still keeps 28 cents of every revenue dollar. Bank of America is off 5% and keeps 29. Price is what you pay. Value is what you get. Microsoft is up 37% and we let it run. No called strikes in this game.