(Note: In case it matters to anyone, I'm not a physician. I live in Maryland. This has caused confusion on some threads.) Profile picture is the NASA GISS Global Surface Temperature Index, 1880-2012. If this were the DJIA, we'd call it a bull market. Instead, it's a disaster in the making. Do you have kids? I invest for total return, through a combination of small-cap value stocks (typically held for months to a year), a core position of dividend stocks, a small selection of growth companies and a limited number of ETFs. I have a diverse background in engineering, neuroscience research, statistical analysis, and software development.
Now retired after forty years in financial services: a) analyzing corporate, bank, and sovereign risk, b) predicting bankruptcies and conducting commercial workouts, restructurings, and dissolutions, c) financing grain, soft commodities, oil, and the precious metal trade internationally, d) overseeing interbank finance and arbitrage, e) modeling and assessing the productivity of financial business units, f) directing aspects of M&A due diligence and post-acquisition integrations, g) serving as CIO of a major full-service broker-dealer, h) consulting including as interim management to global banks, investment advisors, trust companies, and alternative investment / hedge funds, and i) acting as managing general partner of a family farm. An MBA, educated in economics, who held various securities industry licenses (now expired). A donor and volunteer now focused on helping motivated, first-in-family, degree and certificate bound kids, achieve their education. Before investing, always consult with a competent investment advisor; if you don't have one, find one. (All my proceeds from Seeking Alpha go to Interfaith Outreach to support their food shelves and other programs.)
I am a value conscious investor looking for bargains.
1) Price is what you pay, value is what you get
2) Success in investing is limiting losses when you're wrong, and maximizing gains when you're right
3) Start with business model. Margins reflect value add a company's products bring to the market place. Does the Gross Margin and the Product match? High GMs accompany differentiated products with limited competition that do not compete on price. Low GMs accompany undifferentiated products that compete on price, CAPEX spend, cyclicality.
4) How is the business financed? Be wary of companies with a lot of debt. Great businesses do not require huge debt to generate high returns on equity. There is no achievement in generating high ROEs by levering up like banks, leasing businesses (car rental, equipment rental, aircraft rental). ROA should be telling here.
4) A company's value changes because the NPV of future profits changes. NPV of future profits is a function of changes in revenues, gross margins, OPEX, leverage, taxation. A company's value appreciates when the NPV of profits goes up due to revenue growth, GM expansion, OPEX reduction, leverage (refinancing) / tax (change of domicile) reduction.
5) Markets look forward. Bottoms coincide with maximum pessimism while tops coincide with maximum euphoria.
6) A stock is not undervalued because it is cheap and it is not overvalued because it is expensive (based on traditional valuation metrics). Similarly, a stock is not undervalued because it has gone down a lot or overvalued because it has gone up a lot.
7) Look at market cap when valuing companies. Don't be overly influenced by management projections, analyst reports, share buybacks, cash on B/S, price movements, other people in the stock.
8) Companies with significant debt can go bankrupt. Cash burn typically determines if they go bankrupt before the cycle (for their industry or the economy) turns.
9) Undervalued stocks can get cheaper, overvalued stocks can get more expensive.
10) Keep emotion out of investing. You will be wrong. Unpredictable things will happen. Stay vigilant to anger, anxiety, exuberance. Stay vigilant to thesis creep.
11) Leverage will kill you sooner or later. Companies have large operating and financial leverage.
12) Have a thesis. If the thesis plays out, stay with it. If it doesn't exit. Always have a thesis.
13) Understand the business you are invested in. It's valuation and what can go wrong. Know the business inside out.
13) Don't trade.
14) Diversify. There are many good ideas in the market. Don't put your eggs in one basket.
15) Failing businesses rarely turnaround.
I have a graduate degree in economics and have been doing financial analysis, business cases, marketing for 25 years in the telcomm and government contracting industries. I've been actively investing in stocks for ~ 25 years..
I am an engineer with over 30 years in the oil industry as project work and in facilities. Have a masters in business. Do my own investing etc. Have seen the oil industry reduce emissions from their facilities to the level of the 1950's while increasing supply to satisfy demand so have "on the ground" experience in oil operations. The EPA that is not fracking friendly cannot find proof to stop fracking after five years of study. Am pro increase of fracking to get to new sources. Conservative investor.
Mr. A. Paul Gill has been the CEO of Lomiko Metals Inc. TSXV: LMR, OTC: LMRMF since June 2009 and CEO of Lomiko Technologies private) since 2014. Mr. Gill developed significant experience in the strategic development of resource companies such as Norsemont Mining,Inc. (Bought by HudBay Minerals for $ 512 million). He has held the positions of President, Chief Financial Officer, Corporate Secretary and Vice-President of Business Development of Norsemont Mining Inc. and served as a co-founding director. Mr. Gill has been a Consultant of AJS Management private) since March, 2001 and a Director with Graphene 3D Lab TSXV: GGG, OTC: GPHBF, Graphene ESD and Epic Mining Corp.
Former owner of a medium sized regional interstate moving company. After 30 years in this industry I sensed another recession coming and broke up the company and sold to two nationally known large van line operations in 2007. One wanted my warehouses and storage accounts and the other my national account sales base. Worked for one of these companies for a year but found I don't work well with others.
Took the cash I had from the sale of company and began to invest in a deeply depressed market. I felt the older broker I knew from my church and had my IRA was adequate but met a young broker excited to see any cash and have had a great relationship ever since. We've both made a lot of money since 2008. Received a family brokerage account upon their passing and now have a third broker. I am 58 years old.
Semi-retired, married. BA in English. Building trades and real estate. Plenty of money as long as the greedy bastards don't screw it all up. History buff. Follow politics and current events closely. Look for news beyond the mega-corporate media in order to get a more complete picture. Our media situation is quite dire here in the U.S.
Lets Go Mets!
semi-retired business owner/operator
learning the hard way in the market since FYQ2-2013
yeah, I'm buying risky, but my cashes are mostly 20-60%, holding losers as long as I can to see...
I'm trying to work a niche between day trader and buy and hold
I used to have a number of wolf hybrids and am very empathetic to the recovery of the Wolf