Balance Sheet | Choose Stocks Wisely

Meaning of “Assets” and My Investing Approach

Hello friends. I hope my blog post today finds you well!

Last time, I wrote about the nature of balance sheet assets according to the technical meaning assigned by the Financial Accounting Standards Board (FASB). Repeating the definition, assets are “probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events” (FASB Concept 6). Today, I’ll relate the definition to my Scorecard approach of discounting the asset values provided on the balance sheet. […]

January 27th, 2018|assets, Balance Sheet, Risk|0 Comments

Accounting Nature of Balance Sheet Assets

I thought we’d revisit some important balance sheet terminology again. Understanding the accounting meaning of the words which define balance sheet elements is essential to more fully understanding what the balance sheet communicates about the company’s financial position. […]

January 13th, 2018|assets, Balance Sheet|0 Comments

Stock Investing Tips

I hope you are well today. Summer is drawing to a close and doesn’t time go by quickly!

Today, I’ll offer a few key summary tips for investing in common stocks:

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September 17th, 2017|Balance Sheet, catalyst, earnings, Stock|0 Comments

Some Basic Stock Buying Questions

I wrote my book, “Choose Stocks Wisely,” to address how using the balance sheet is essential to defining quality and low price before assuming the risk of investing in common stocks. Since I’m investing the Lord’s money, it’s important to me that I try my best to mitigate unnecessary risks while allowing for opportunity to realize a good return. […]

June 24th, 2017|Balance Sheet, common stock questions, Scorecard|0 Comments

Financial Flexibility and Substantive Equity

In a nutshell, my balance sheet approach to investing emphasizes the matters of financial flexibility and substantive equity, both of which are primarily defined by a company’s present balance sheet. I say “primarily” because future performance indeed will change the existing balance sheet in terms of its financial flexibility and its quantity and composition of equity. How a company manages that future performance will impact the future balance sheet. […]

January 7th, 2017|Balance Sheet, Equity, financial flexibility|2 Comments

Screening for Stocks (Q & A)

Hi friends. I hope you enjoyed a wonderful Thanksgiving season. Christmas is just around the corner. The weather has been warm and very dry in the deep south until just this past week but today is cool and very rainy, feeling more like winter and Christmas time.

Today, I’ll share a portion of a question and answer conversation I recently had with a reader of my book, “Choose Stocks Wisely.” Thor asked me: […]

December 3rd, 2016|Balance Sheet, stock filters, value investing|Comments Off

A High Pressure Economy

Last week I posted about a couple of recent articles that discussed both Federal Reserve Chairwoman Janet Yellen’s and former Treasury Secretary Larry Summer’s support for potential future government purchases of stocks. The very notion of the government entering the stock market as a regular participant challenges my notion of a free market. This week, I’ll write a little about a Reuter’s article from October 14 expressing Yellen’s floating of the idea of running a high pressure economy. […]

October 22nd, 2016|Balance Sheet, Federal Reserve, Risk|0 Comments

Government Stock Purchases??

I was very recently reading about the government giving serious consideration to regularly engaging in stock purchases to help offset subdued growth and inflation. I must admit to cringing at this notion. […]

October 8th, 2016|Balance Sheet, common stock, government stimulus|0 Comments

Living Above Uncertainty

Depending on which way the wind is blowing, you may read someone predict a stock market crash if Donald Trump is elected or you may read that a crash will occur if Hillary Clinton is elected. While there could be volatility following the election, the stock market throughout its history has been a place of day to day uncertainty and that means volatility in stock prices. […]

September 10th, 2016|Balance Sheet, Jesus Christ, uncertainty|1 Comment

Does the Bull Market in Stocks Make Sense?

Hi friends. I’ll leave the question posed in the title of this week’s post for you to ponder. I certainly have my own opinion.

I’ll share some recent August articles from the managing editor of Yahoo Finance, Sam Ro, with regard to the reasonableness of the continuing strength of the major U.S. stock indices. […]

August 27th, 2016|Balance Sheet, bull market, earnings|2 Comments