Value Investing News

COMPANY PROFILE
Incorporated in 1952, Lowe’s Companies Inc (LOW) is the world’s second largest retailer in home improvement. Currently, it has a network of over 1,750 retail outlets across the U.S., Mexico, and Canada.

Some traditionalist would say your home is your greatest wealth building asset. I would argue it is not. Others would say your income is your greatest wealth building asset. Thought there is a lot of truth to the statement, it is still not your greatest wealth building asset. So, what is your greatest wealth building asset? Everyone is born with it.

Lowe's Companies, Inc. sells retail building materials and supplies, lumber, hardware and appliances through more than 1,700 stores in the U.S. and Canada. Linked here is a detailed analysis and commentary.

Magic Formula Investing is a process that can be applied to any list of stocks, not just the market at large. This article shows how you can use the MFI process to find the best opportunities in a variety of scenarios.

To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Inertia is powerful force. Once a company has established a track record of growing its dividend over the decades and developed a shareholder base that expects higher dividends each year, it becomes increasing difficult for management to cut or fail to raise their dividend.

Lowe’s Companies, Inc. sells retail building materials and supplies, lumber, hardware and appliances through more than 1,700 stores in the U.S. and Canada. Linked here is a detailed analysis and commentary.

Kirkland's is a home decor retailer selling a wide variety of items including wall decor, candles, rugs, mirrors, seasonal gift items, and so forth. An amazing turnaround has led to a 2,000% gain in the stock price from 2008, and with good business momentum, the stock should continue to climb.

Bud Labitan is a fellow value investor and the author of Valuations – 30 Intrinsic Value Estimations in the Style of Warren Buffett and Charlie Munger. I recently met with him on the campus of Purdue University Calumet at the School of Management.

Ben: Interesting. What moved you to finally put one together?
Bud Labitan: As a book, "Valuations" came about in my mind after I had posted a few example valuations at seekingalpha.com. I wanted a book that showed cases on how to sensibly value a business.

In this first article of a mini-series on stock valuation, we will take a look at the grand-daddy of all methods: the discounted free cash flow valuation. How does it work? What are the pitfalls? What adjustments can we make?

The Forbes Top 150 Companies list ranked by Magic Formula Statistics. Which large global companies are both cheap and highly efficient with capital?

For dividend growth investors, there are certain attributes of investments that are more relevant than others, such as yield and dividend growth. To illustrate the power of dividend growth consider that an investment’s yield-on-cost will double every 5 years if they grow their dividend by 15%/year or 7 years at 10%/year or 14 years at 5%/year.

Last year I introduced the Stock Ideas list and it has proven to be immensely popular. The list consists of Dividend Aristocrats, US Broad Dividend Achievers and U.S. Dividend Champions. Here are some highlights on this year’s changes: