Joel Greenblatt, of “Magic Formula” fame, gave a rare interview yesterday on CNBC. The interview had Greenblatt talking about the components of his magic formula as well as recapping its phenomenal performance to date. What Greenblatt stressed multiple times in the interview is that the formula selects many stocks that are currently out of favour with [...]
From the category archives:
education
Return on assets (ROA), return on equity (ROE) and return on invested capital (ROIC) are the three most prevalent metrics used to obtain an idea of the returns a company generates, and to compare this return generation to the company’s peers. While important information can be learned from each one of these metrics, there are [...]
The markets MAY have started a long awaited correction today, but then again it’s impossible to tell for sure. Know the value in the companies you own, don’t panic sell, and use major dips in the market as buying opportunities.
By trying to time the market’s daily fluctuations you are playing a game that you can [...]
With so many companies to research out there how does one go about finding potential value stocks? Value investors tend to read a lot; Francis Chou has even been quoted as saying he reads upwards of 200 pages (newspapers, magazines, books, etc) every day. On top of daily reading it’s important to have a resource [...]
We’ve had a lot of new visitors this week coming from various referrals on the web, and other sites where my articles are syndicated. I just wanted to take this opportunity and say welcome. It is my hope that you find this site to be a useful resource whether you are an experienced investor or [...]
As mentioned in my basics course on value investing, the first step I take in valuing a company is discovering its net asset value. That is, the value per share of the company’s assets after accounting for (subtracting) all liabilities. If the company is healthy, and operates in a viable industry, the assets should be [...]
Guest Post: Who is Diversification Supposed to Protect?
June 15, 2010 · 2 comments
The investment industry has done a wonderful job convincing people that diversification is a no-brainer. Who can argue that it is prudent to put all your eggs in one basket? However, is diversification really protecting you or is it protecting your broker or financial advisor? Warren Buffett, the greatest investor in the world, said,
“Diversification is [...]
2 Comments