Lesson on value investing
Submitted by Ken Faulkenberry on Wed, 2016-06-22 09:02
There is nothing more important than Intrinsic Value and Margin of Safety in Investing! The purpose of estimating intrinsic value is to take advantage of mis-priced assets. The variables of this calculation determine your margin of safety.
Submitted by George on Thu, 2016-04-28 14:14
Meb Faber Shareholder Yield equals Dividend yield + Buyback yield + Net debt repaid yield. Check out the backtest of this fundamental.
Submitted by Ken Faulkenberry on Thu, 2016-04-28 10:14
Value investing involves searching for investments where the perceived risk is greater than the real or actual risk. The most favorable investing environment is high perceived risk and low real risk. The least favorable investing environment is low perceived risk and high real risk.
Submitted by George on Tue, 2016-04-19 12:35
This is a revised version of the backtest on the free cash flow to enterprise value ratio backtest posted a few weeks ago. The free cash flow to enterprise value ratio is a rather sophisticated valuation ratio that should be a part of every value investors toolkit.
Submitted by ttonca on Mon, 2016-04-18 15:06
Curious about bank valuation? Here is a short primer and case study.
Submitted by ttonca on Thu, 2016-04-14 11:14
For anyone Interested in learning more about investing in banks.
Submitted by Ken Faulkenberry on Wed, 2016-04-13 17:23
The Intelligent Investor, by Benjamin Graham, may be the most important and valuable investment book ever written!! The following is a comprehensive review and summary that can be completed in less than 30 minutes.
Submitted by Ken Faulkenberry on Wed, 2016-04-06 15:19
Two investors buy the same stock, receive the identical amount of dividends, and sell at the same price. One earns a 203% total return and the other just 11%. The powerful lesson here:
Submitted by Ken Faulkenberry on Wed, 2016-03-30 09:25
Value investors need an investment risk management plan that prevents a permanent loss of capital. This is my plan.
Submitted by MagicDiligence on Wed, 2016-03-23 07:04
How Return on Capital is calculated and the differences between several versions of the calculation.
Submitted by George on Fri, 2016-03-18 10:42
The free cash flow to enterprise value ratio is a rather sophisticated valuation ratio that should be a part of every value investors toolkit. Here's how it performed over the past 16 years.
Submitted by Ken Faulkenberry on Thu, 2016-03-17 21:38
Benjamin Graham called margin of safety “the secret of sound investment” and “the central concept of investment”. He also devoted a whole chapter to the concept and, I am confident, placed it last because it is the most important.
Submitted by George on Fri, 2016-03-11 13:06
Net-net stocks are those which sell below liquidation value and are major bargains. Avoid being a victim of value traps by only investing in net-nets which:
1) Generate revenue
2) Experience NCAV Burn of less than 25% annually
3) Aren’t based in China or if you are risk averse, aren’t Chinese
4) Have sold at a price above the current NCAV in the past 5 years
5) Are not issuing shares
6) May experience an event in the near future if it is an asset-shell
Submitted by Ken Faulkenberry on Wed, 2016-03-09 17:41
The financial concept of asset correlation is important because the goal of asset allocation is to combine assets with low correlation in order to reduce portfolio volatility.
Submitted by George on Thu, 2016-02-04 11:11
My backtest indicated a 11.33 percent difference between the first and fifth quintiles in the 2000 to the end of 2015 time period.