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3 Attractive Industries for Investment

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Looking for places to find attractive stocks to invest in? Check out these 3 industries.

3 Reason to Keep a 100% Equity Portfolio Until You Die

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  • It took about 3 years for the S&P 500 to fully recuperate (total return includes dividend) from the worst yet crash in market history.
  • I don’t know if or when the market is going to crash.
  • How can you go wrong when you get more and more cash in your account as dividends grow?

Most Undervalued Stocks of the S&P 500 - August 2018

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There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I've selected the ten most undervalued companies of the S&P 500.  All of these companies are suitable for the Defensive Investor and/or the Enterprising Investor. Defensive Investors are defined as investors who need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk.

Dear Bayer shareholders, what are you thinking?

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  • On twitter recently I sought out discussion on risks of Bayer stock and litigation was the key one.
  • Today Bayer stock is down 12 percent on a California court case where a dying plaintiff claimed that roundup caused his cancer and a jury agreed.
  • This seems disproportionate to me - but then I own Bayer stock.

Walter Schloss: All Superinvestors Make Mistakes Of Omission

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  • Edwin Schloss shared a couple of great anecdotes on how he and his father made two very big mistakes of ommission by not getting in early on Apple stock in 2009/2010, then called Apple Computers when it was $11, and Xerox in the 1950’s, which was then called The Haloid Photographic Company.
  • But, I have to tell you that my dad had a very interesting experience when he worked for Benjamin Graham in the fifties.
  • Ben said, “This is not an area we usually invest in.

Eh, me: Yeah!

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  • I was too chicken to buy shares of Aimia when they crashed last year.
  • But thankfully I did pick up a position in the preferred shares, as discussed here.
  • The price of those preferreds rose slowly,...

Seth Klarman: 32 Books That Every Investor Should Read

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  • You can find notes from Jason Zweig’s interview with Seth Klarman at the CFA Institute Annual Conference 2010 here:
  • Last week we compiled our Top 50 investing Books Of All Time .
  • Over coming weeks we’ll provide recommended reading lists from some of the superinvestors.

Latticework of Mental Models: Lollapalooza Effect

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  • It’s a lollapalooza.
  • Lollapalooza and Tupperware Parties A Tupperware party, according to Munger, is the best example of Lollapalooza effect because multiple psychological biases work in the same direction and push people towards irrational decisions.
  • Lollapalooza and the Stock Market So how does lollapalooza play out in the stock market?

Buying and selling retail fashion stocks

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  • I also remember writing about Coach, and Kate Spade.
  • But Guess has always been unusual compared to some other fashion companies in that their balance sheet is debt-light and cash-heavy, which gives them a lot of time to figure out how to turn their $2+ billion in revenues into $2+ billion in profitable revenues.

Free Course on America’s Great Depression

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  • My favorite book to recommend is The True Believer: Thoughts on the Nature of Mass Movements by Eric Hoffer.
  • People panic in a group, but they come back to their sense one by one.
  • Dr. Murphy’s book, The Politically Incorrect Guide to the Great Depression and the New Deal, would be very helpful for students, but it is not required for the course.

Observations: Tesla, David Einhorn & Turkey

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  • Part of the reason that Tesla is shorted so much is the expectation that they will need to raise equity which clearly shows the dilemma of public equity markets these days.
  • I have no idea how this will play out, but in this case the problems for the Lira were easy and early to see.
  • Plus there is a risk that interest rates could actually increase which would be the normal course of action if inflation increases and negatively impact the price of the bond.

Kennametal, Inc. - Equity Report

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  • Future Value My future (5 year hold) target price for the stock is $54, which is an average annual return of 8%.
  • Baseline valuations are based on free cash flow value, net current asset value, book value, and tangible book value.
  • My current fair value estimate for the stock is $39.

AAR Corporation - Equity Report

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  • Operating Income Income unrelated to a company's day to day operation, such as income tax benefits or income from other sources will distort a company's earnings and consequently its fair value.
  • Baseline valuations are based on free cash flow value, net current asset value, book value, and tangible book value.
  • My current fair value estimate for the stock is $5.

Worthington Industries, Inc. - Equity Report

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  • Of those 98 insider trades, 47 were Buys involving 336,295 shares of stock, and 51 were Sells involving 403,837 shares of stock, creating an insider buy to sell ratio of 0.8 to 1.
  • Future Value My future (5 year hold) target price for the stock is $111, which is an average annual return of 29%.
  • My current fair value estimate for the stock is $32.

The Acquirer’s Multiple Webinar – How To Beat The Little Book That Beats The Market

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