Lesson on value investing
Submitted by ttonca on Fri, 2015-12-11 20:01
While recently embarking on a deep dive research project/paper on solvable, one-time corporate scandals which have shaken enterprises throughout history to their very core and the long-term result of investing in said businesses during such traumatic times in their respective histories; a most relevant and timely case study surfaced:
Submitted by George on Fri, 2015-12-11 11:33
The paper, published in the Journal of Financial and Quantitative Analysis, confirms the U.S. evidence that cheap enterprise multiple stock outperform expensive enterprise multiple stocks by about 1 percent per month. And it works just as well whether the markets are developed or emerging, and in stocks small and large.
Submitted by Ken Faulkenberry on Wed, 2015-11-18 09:51
Dividend Growth Investing - Why?
Submitted by ModernGraham on Wed, 2015-09-02 11:47
In any valuation of common stock, estimating the growth rate is a key factor. It seems that every possible formula for determining a company's intrinsic value relies heavily on a growth variable. As such, intelligent investors must place great emphasis on utilizing an effective and reliable method of estimating growth.
In this article we will explore various approaches to estimating growth, providing examples of each, and then explain the ModernGraham approach to the problem of growth rates.
Submitted by Ken Faulkenberry on Tue, 2015-06-16 16:58
The key to being a successful investor is to know the difference, and understand the relationship, between price and value.
We Don’t Have To Be Smarter Than The Rest. We Have To Be More Disciplined Than The Rest!
Submitted by George on Wed, 2015-05-06 09:41
The Return on Invested Capital (ROIC) ratio is a very popular measure of company “quality” among value investors. The top 20 percent of stocks sorted by Return on Invested Capital (ROIC) was found to just underperform the benchmark, the S&P 500 equal weight index.
Submitted by ttonca on Sat, 2015-04-25 22:57
Got some specialized business sector specific knowledge? Help me make this better.
Submitted by George on Mon, 2015-04-20 13:53
- If you can identify which companies have sustainable economic moats, you'll pay up for only companies that are really worth it.
- The dark area is the aggregate economic value generated by each company, and you can see how much larger it is for the company that has a moat.
- Think about Coca-Cola's disastrous launches of New Coke years ago - it was a complete flop that cost the company a lot of money, but because Coca-Cola could fall back on its core brand, the mistake did not kill the company.
Submitted by Ken Faulkenberry on Wed, 2015-04-15 11:03
The Best Value Portfolio Management Book Ever Written?
Submitted by George on Mon, 2015-03-02 14:00
This screen-cast tutorial shows you how to look up annual reports (10-K) and quarterly reports (10-Q) for companies using the SEC EDGAR search tool. If you are a new investor, you definitely want to learn how to find these essential documents for the companies you are researching. More experienced investors may find this tutorial helpful in highlighting some of the SEC EDGAR features you are not currently fully utilizing.
Submitted by George on Fri, 2015-02-06 15:22
Fat Pitch Financials conducted an extensive backtest on the performance of the Piotroski F-Score from 2000 though the end of 2014. Check out the results.
Submitted by sajid.karsan on Fri, 2015-01-09 06:29
Adam Smith is well-known as a promoter of specialization and trade and the coining of the phrase "The Invisible Hand". But upon reading How Adam Smith Can Change Your Life, I recognize that the fact...
Submitted by Ken Faulkenberry on Wed, 2015-01-07 21:24
Investment risk is the most crucial concept in investing. Value investors need a risk management plan that prevents a permanent loss of capital through the use of asset allocation, diversification, and valuation investing.
Submitted by sajid.karsan on Wed, 2015-01-07 06:41
When a company you follow has a new filing, you can now receive notifications by text (not just e-mail) at conferencecalltranscripts.org. As far as I know, that's the only site that provides that...
Submitted by sajid.karsan on Mon, 2015-01-05 06:25
I recently read a great book by the name of Getting Real by Jason Fried. I got the book because I was a big fan of another book by Fried by the name of Rework.
The problem is, the books are very...