Corporate Earnings

  • 07 May
    What You Can Learn From Berkshire’s Annual Shareholder Meeting

    What You Can Learn From Berkshire’s Annual Shareholder Meeting

    This past Saturday, the Woodstock for capitalists was on as Warren Buffett and Charlie Munger held their annual shareholder conference.

    If you want to succeed in investing and reach your financial goals, this conference and the insights from it are all you need to listen to in order to learn about investing, what’s going on, and what to do about it.

    In today’s article, I’ll summarize what the key points to take out are and also save you the 6-hour watch.



    More →

  • 30 Apr
    Is This The Perfect Portfolio?

    Is This The Perfect Portfolio?

    • We’ll discuss how Robert Shiller predicted the stock market bubble in the 1990s and how it resembles the current situation.
    • We’ll also discuss the perfect portfolio.



    Introduction

    I recently listened to an interview with Nobel Prize winner Robert J. Shiller on the topic of finding the perfect portfolio. It’s a very interesting subject, so I’ll summarize the interview and discuss the key concepts.

    Before we dig deeper, let me first describe a few interesting interview intros. Shiller didn’t get the Nobel Prize for nothing as he correctly identified that stocks were in a bubble in the 1990s, and that real estate was in a bubble in the 2000s. More →

  • 25 Apr
    Here’s Why You Should Worry About What Happened In The Market Yesterday

    Here’s Why You Should Worry About What Happened In The Market Yesterday

    The thing with the stock market is that it gives you signals way ahead of time, but nobody wants to listen. The things I’ve been blabbering about over the past two years are the following:

    1. Higher interest rates will come just as the FED told us they would.
    2. Higher interest rates will squeeze valuations.
    3. Higher interest rates will slow down economic growth.
    4. Higher interest rates will slow down earnings growth.

    So, let’s start by discussing these.



    The 10-Year Treasury Passes 3%

    When the 10-year Treasury was below 3%, nobody seemed to care except a few crazy analysts like this scribe. However, when it crossed 3%, the market suddenly looked at what had been going on for nearly the last two years. More →

  • 12 Mar
    Watch Out, Your Value Is Being Stolen

    Watch Out, Your Value Is Being Stolen

    • Book value might be the biggest not risk, but loss of value in the current market environment.
    • A full year of S&P 500 earnings evaporates every 3.5 years.
    • Fortunately, there is something you can do.



    Introduction

    Today, I’ll continue with my series on market risks. These are the main market risks I see and you can read more about them by clicking on the links provided:

    • Debt is being used recklessly.
    • Valuations don’t matter as growth is the key and profitability will come.
    • Book values are so old fashioned.
    • Stocks can only go up and corrections and bear markets don’t last long.
    • If you invest in index funds, you will do well.

    In this article, I’ll focus on book values which are often an omitted metric, especially late into a bull market, but are extremely important. More →

  • 07 Mar
    Risks Are Piling Up – That’s A Huge Red Flag For Stocks

    Risks Are Piling Up – That’s A Huge Red Flag For Stocks

    Last week I discussed how the risk are piling up on the debt side of the equation. However, those aren’t the only risks piling up which isn’t uncommon for humans. When we stray, we usually stray in a big way.

    So, on top of the debt, there are other huge risks and today the discussion will be about valuations:

    • Debt is being used recklessly.
    • Valuations don’t matter as growth is the key and profitability will come.
    • Book values are so old fashioned.
    • Stocks can only go up and corrections and bear markets don’t last long.
    • Real estate can only go up.
    • If you invest in index funds, you will do well.



    Now, I’ll discuss a lot of macro, and even some politics on Monday, but such factors might be insignificant or very significant depending on market valuations. High market valuations make stocks fragile, while low valuations make them more robust as once stocks are low, there is little room to go lower. However, when stocks are high, a lot of bad things can happen. The sad thing is that we have been there and we are doing the same mistakes all over again.  More →

  • 01 Dec
    Here’s What Corporate Tax Reform Would Do For Stocks

    Here’s What Corporate Tax Reform Would Do For Stocks

    • There are two big things that can impact stocks, lower corporate taxes and a tax repatriation holiday.
    • We’ll discuss which stocks would benefit the most and if it makes sense to invest in them now to reap any kind of benefit from tax reforms or a tax holiday.
    • I’ll also share my opinion on the long-term impact lower corporate taxes would have.



    Introduction

    There’s a lot of talk about tax reform and how it should have a positive impact on the markets. However, it’s important to understand what exactly could happen and how it could impact your portfolio.

    In today’s article, we’ll discuss what all the fuss is about and see what the plausible impact on individual stocks and the stock market would be. More →

  • 02 Nov
    Discussing S&P 500 Earnings & What Wall Street Won’t Tell You

    Discussing S&P 500 Earnings & What Wall Street Won’t Tell You

    • I’ll first describe what’s going on with earnings as 55% of companies have reported. We’ll discuss insurance a bit more.
    • A helicopter view shows that the S&P 500 averages have a large distribution.
    • I’ll conclude with some inconsistencies everyone should be aware of when listening to Wall Street and earnings.



    Introduction

    55% of S&P 500 companies have now reported earnings, and it’s always nice to check those aggregate earnings to see how the market is breathing.

    I‘ll show you the data from the current earnings, which are very interesting, but I’ll also show you the difference between what Wall Street is painting and reality. Let’s start with current earnings. More →

  • 25 Oct
    How To Calculate Intrinsic Value & Why You Need To

    How To Calculate Intrinsic Value & Why You Need To

    • Calculating the intrinsic value of a stock is essential for making any kind of buy or sell decision.
    • However, intrinsic value is different for everyone and depends on what you expect from the market.
    • Attaching a margin of safety to intrinsic value is all you need for low risk high return investments.



    Introduction

    99% of the what’s discussed about stocks is whether a stock is undervalued or overvalued and where will it go as you wouldn’t be a proper analyst without a price target on every stock you discuss.

    This is completely the wrong way to approach investing, but we as analysts will continue to deliver what the market wants. More →

  • 06 Oct
    Analysts Love This Metric. Here’s Why You Shouldn’t.

    Analysts Love This Metric. Here’s Why You Shouldn’t.

    • EV/EBITDA is a widely used metric these days, so every investor should understand what it is.
    • We’ll discuss how EV/EBITDA is calculated and how you can manipulate it.
    • There are some pros to using it, but also some cons.



    Introduction

    When I was just starting with investing, I remember that the beta coefficient was popping up everywhere, next to almost every stock price or price to earnings ratio.

    The beta coefficient has faded in the last two decades as it was clear that markets aren’t efficient and that there is no real usage of the metric. Now a new metric has emerged lately and is used by most analysts. More →

  • 01 Sep
    Yes, It’s Possible. No, It’s Not Hard. This Is How You Can Outperform The Market.

    Yes, It’s Possible. No, It’s Not Hard. This Is How You Can Outperform The Market.

    • The modern portfolio theory states that 30 stocks are enough for a portfolio.
    • However, every addition to your portfolio increases the likelihood of it being a loser.
    • A businesslike perspective offers a different approach that can lead to much better returns.

    Introduction

    There are millions of investing opportunities, from real estate, to stocks, bonds, options, derivatives, various funds, commodities, stamps, antiques, cars, and who knows what else. This makes all investors, from beginners to professional investors, very confused on what to invest in. In today’s article, I’ll give a perspective on how many positions one should have in their portfolio that you haven’t heard before. More →

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