Value Investing News

This short article is an update of stocks that we follow in our “Margin of Safety Portfolio.” These are stocks identified to have a durable competitive advantage and, based upon our intrinsic valuation models and fundamental analysis, are trading at a substantial discount to intrinsic value.

Current trends and events
■New strategic partnerships at Microsoft;
■HP’s webOS will go open source;

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As the world continues to shrink through technology advancements, and all of the products that consumers demand become commoditized, a company’s brand can be a valuable competitive advantage. It’s no coincidence then that the four top brands in the world, as measured by their brand value, are also among the largest in terms of capitalization and revenue.

Magic Formula Investing Europe (MFIE) recently released a paper that contained several back-test studies of various mechanical value investing strategies on stocks in the Eurozone. What, if anything, can we learn from these studies to apply to MFI investing in the U.S. market?

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