cigar butt
Word Rarity
Rare
Frequency: 3.49 in modern English
14
Scrabble Score
9
Letters
1
Syllables
8
Unique Chars
Meaning
noun
Used other than figuratively or idiomatically: see cigar, butt.
noun
A company bought under the premise of value investing, from the idea of an inefficient attention allocation of market participants present in shares of a quality where almost no value is left, making them comparable to a cigar end left on the pavement where the last puff, though it be ugly and moist, is free.
Example Sentences
- "However, this bargain-hunting strategy contains an inherent flaw that limits the upside. Once Buffett's capital base grew large enough, cigar butt investing was no longer feasible. Beyond a certain scale, he needed to shift from maximizing the return of capital to maximizing the return on capital. This inflection point arrived in the mid-1960s after a series of mistakes in buying cigar butts."