China Investing: Like a Kid in a Toy Store

Lastly, I did look into Toys 'R Us. It's owned by Vornado Realty Trust (VNO Quote), which according to Google has a P/E of over 1,000. It comes with a "yield" of 8.5% and its P/E is actually around 10. I say "yield" because thei dividend is not all cash anymore, but includes shares of Vornado stock as well. I'm not confident in valuing Vornado, and I'll leave it at that.

It has been said that when it comes to markets, markets are never wrong, opinions often are. I disagree. Markets can persist to incorrectly value companies for an incredibly long time. Give them enough time, and they still may be wrong. My opinion is that if you have a company that makes $10 million carrying a price tag of less than $50 million and has the growth potential to grow income to $100 million, there is a lot of money to be made.