Value Investing News

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:

Home Depot Inc. (NYSE: HD), the world's largest home improvement specialty retailer, is scheduled to report third quarter earnings before the market open on Tuesday, November 17, 2009. Analysts on average expect the company to report earnings of 36 cents per share on revenue of $16.29 billion.

Part 2 of Warren Buffett's Berkshire Hathaway Stock Portfolio

Berkshire Hathaway (BRK-B) just posted its 13-F filing with the SEC, which lists changes in its stock positions.

A look at Warren Buffett's portfolio to see if the companies follow Benjamin Graham's requirements of the Enterprising and Defensive Investors as described in The Intelligent Investor.

Some of my fellow dividend investors have accused Warren Buffett of being a closet dividend investor. I won’t quite go that far, but there is significant common ground between dividend and value investors. With that said, let’s take a close look at Mr. Buffett’s most recent 13-F filing with the SEC.

I hate to sell a stock. When I buy a stock, my intention is to hold it forever and enjoy its ever-growing dividend income. Unfortunately, it doesn’t always work that way. Let’s take a look at a two-step process designed to help us determine if we should sell a stock after a dividend freeze.

There are several formulas used for calculating that most important of business statistics - free cash flow. But what is truly the best way given available financial figures and theoretical meaning of the term?

Looking back to the beginning of the current recession, there were two things that initially put the brakes on the economy: 1.) the sub-prime melt-down and 2.) virtual halt of residential construction. Has housing finally hit bottom?