Revisiting the Basics of Stock Investing
Hey Friends. In 2013, my book, “Choose Stocks Wisely,” was published. Its emphasis is on the balance sheet as the starting point for stock investment analysis. Why this emphasis? […]
When Earnings Slow, Where’s the Bottom?
Hello friends. I hope this post finds you doing really well. Summer is quickly approaching here in the deep south. Temperatures around our town are already hitting the 90+ degree level. It’s “hot” today — and humid!
The stock market surely isn’t hot at this time. As you know, it’s in a tailspin. Many stock market pundits have that “deer in the headlights” look about them as they scramble to forward their opinions as to “what’s next for the stock market,” or “where’s the bottom,” etc. […]
Retained Earnings — What exactly is it??
Hey friends. The Fall season is already upon us. Of course, we know that Thanksgiving and Christmas will also be upon us soon. Yes, time races by as the Scripture says. May God bless you with His wisdom in your comings and goings. […]
Buy Low, Sell Higher
Hey friends. My book, Choose Stocks Wisely, reflects my attempt to define a low stock price using the balance sheet as the primary tool. The book does not discuss “selling high.” When to sell is the more difficult judgment call to make as it rests more on future prospects than it does on the present substance of equity as defined by the balance sheet. […]
Value Plus Catalyst Is Desirable Combination
Hey friends. My book, “Choose Stocks Wisely,” addresses blending earnings with the balance sheet equity to derive a proxy for low price. In a nutshell, deep value plus an earnings catalyst often result in the most favorable outcomes. […]
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. […]
An Age Where Equity No Longer Matters?
Equity is the excess of assets over liabilities. It is ownership. To really have ownership, there has to be a surplus of resources above all obligations. […]
Off Balance Sheet Obligations
A good question came from a reader of my book this week. The question concerned the proper treatment of off balance sheet obligations relative to my evaluation process for scoring stocks. I’ll discuss this issue a bit today. […]
When Companies Buy Other Companies
The buying methodology I share in my book, Choose Stocks Wisely, is premised on the fact that a share of common stock is a share of company equity. Equity means ownership. On that basis, I seek out a low price for a share of company equity where I derive the value of the equity from the balance sheet’s revelation of the amount and composition of that equity. […]
Netflix, Equity and Earnings
A reader named Marc who has become a friend over the past year corresponds with me from time to time. This week he wrote me about Netflix (NFLX) as an excellent very recent example of a major point of emphasis in my book, “Choose Stocks Wisely.”
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