Author has a bachelors degree in computer science and passed Uniform Investment Adviser Law exam (Series 65). All the investment and finance related knowledge (or lack of it) that the author has gained over the years is self taught. Don't be fooled by that. Like everybody else in the field, the author gets humiliated by the market all the time. If you are Seeking Alpha's Pro subscriber and find author's performance results impressive, you couldn't be more wrong. It's mostly luck and the luck does not favor anyone forever. Do not trade based upon anything written or spoken by the author including articles, instablog entries or comments here on seekingalpha or elsewhere. Do your own research. If you loose money after acting upon anything mentioned in author's writings/words or user's comments on it, you alone are responsible. Having said that, if you happen to make money and "voluntarily" decide to share your profits with the author, you are more than welcome to do so, just send the author a message and the author will respond with the address to receive the check :-) Happy investing !!
Friedrich is the name given to our algorithm for analyzing companies that trade on the global stock markets. In creating Friedrich we concentrated on analyzing each company’s Main Street operations through various established ratios, along with our own unique ratios that we developed over the last 30 years. What we came up with is a final "Main Street" price per share based on Generally Accepted Accounting Principles (GAAP), which is a framework of accounting standards, rules and procedures defined by the professional accounting industry, which has been adopted by nearly all publicly traded U.S. companies. We feel that our Main Street price result is what each company would need to trade at in order to be attractive to a businessperson on Main Street looking to buy at a bargain.
Since the only constant in the universe is change, the results for each company fluctuate by varying degrees. No company is an island unto itself, but each operates in a world of constant change and at times in areas where Chaos is the norm. By analyzing a company’s Main Street operations over time, Friedrich is able to give the potential investor a decade long analysis (opinion) as well as offering a Trailing Twelve Month (TTM) analysis (opinion), as well. Thus our readers will not only get as close to a real time view of operations on Main Street as is possible, but then can measure the consistency of the company’s operations over time to determine if s/he should invest or not.
Through our Friedrich algorithm we can analyze ten years of Balance Sheet, Income Statement and Cash Flow Statement data for each company all at once and generate one final result in seconds. Friedrich was designed to be ultra-conservative and thus will cut zero slack to any company under analysis and will do so with zero emotion. Companies must be exceptional in order to get an attractive Main Street valuation and the ideal investments according to our backtesting are the ones that have been consistent over time.
By being so ultra conservative Friedrich is designed to identify bargains that Wall Street investors may have overlooked. Companies shares may trade on the stock market but the companies themselves operate on Main Street, so Friedrich is designed to generate a Main Street price per share first and only then does he go to Wall Street and see the price for which Benjamin Graham’s “Mr. Market” is offering the shares.
About Hannah Terhune
A veteran hedge fund attorney in private practice for two decades, Ms. Terhune and her staff of professionals through Capital Management Services Group provide advice and services to a wide range of investment management clients, including active investors, active traders, day traders, investment advisers and hedge funds on six continents. Ms. Hannah M. Terhune has served with KPMG Peat Marwick LLP (Palo Alto), Deloitte & Touche LLP, (San Jose) and the United States Tax Court, Washington, D.C. Ms. Terhune has written over 100 articles and white papers on hedge funds and tax matters. Ms. Terhune also holds two law degrees. She attended New York University’s School of Law in New York City and received a Master of Law in Taxation in 1991. She also attended George Mason University School of Law in Arlington, Virginia and received a Juris Doctor in 1989. She attended the American University in Washington, D.C. and received a Bachelor of Arts in Public Relations as well. For many years, she shared her wisdom and wealth of knowledge as a tax law columnist for WorldTrade Executive, Inc. At times, she has served as an adjunct professor, lecturing in taxation, business, and accounting at George Mason University’s Graduate School of Management and at the Columbus School of Law at Catholic University, Washington, D.C. Hannah served as a military lawyer (Judge Advocate General or “JAG”) with the United States Army, Special Operations Command. Her prior military service includes serving as the JAG at the 426th Foreign Internal Defense/Unconventional Warfare Battalion (component of U.S.A. Special Operations Command) located in Upland, California. She also served as the Aide-de-Camp to Brigadier General Robert Lucas while attached to the 351st Civil Affairs Command, located in Mountain View, California, as well as serving with the 221st Military Policy Brigade located in San Jose, California.
Wall Street Breakfast, Seeking Alpha's flagship daily business news summary, is a one-page summary that gives you a rapid overview of the day's key financial news. It's designed for easy readability on the site or by email (including on mobile devices), and is published before 7:00 AM ET every market day.
Wall Street Breakfast readership of over 900,000 includes many from the investment-banking and fund-management industries.
Sign up here to receive the Wall Street Breakfast in your inbox every business day: http://seekingalpha.com/account/email_preferences
Please note that I do not read comments posted here, nor respond to messages here. I don't have the time. If you want my attention, you must seek it directly at my blog.
David J. Merkel, CFA — From 2003-2007, I was a leading commentator at the excellent investment website RealMoney.com (http://www.RealMoney.com). Back in 2003, after several years of correspondence, James Cramer invited me to write for the site, and now I write for RealMoney on equity and bond portfolio management, macroeconomics, derivatives, quantitative strategies, insurance issues, corporate governance, etc. My specialty is looking at the interlinkages in the markets in order to understand individual markets better.
I no longer contribute to RealMoney because my work duties have gotten larger, and I began this blog to develop a distinct voice with a wider distribution.
In 2008, I became the Chief Economist and Director of Research of Finacorp Securities (http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/02-08-2008/0004752449&EDATE=). Finacorp went into liquidation in June 2010, after which I decided to open my own asset management shop, Aleph Investments, LLC. I manage stock and bond portfolios for clients.
Until 2007, I was a senior investment analyst at Hovde Capital, responsible for analysis and valuation of investment opportunities for the FIP funds, particularly of companies in the insurance industry. I also managed the internal profit sharing and charitable endowment monies of the firm.
Prior to joining Hovde in 2003, I managed corporate bonds for Dwight Asset Management. In 1998, I joined the Mount Washington Investment Group as the Mortgage Bond and Asset Liability manager after working with Provident Mutual, AIG and Pacific Standard Life.
My background as a life actuary has given me a different perspective on investing. How do you earn money without taking undue risk? How do you convey ideas about investing while showing a proper level of uncertainty on the likelihood of success? How do the various markets fit together, telling us us a broader story than any single piece? These are the themes that I will deal with in this blog. I hold bachelor’s and master’s degrees from Johns Hopkins University.
In my spare time, I take care of our eight children with my wonderful wife Ruth. Visit this site: The Aleph Blog (http://alephblog.com/)
I was born in Spain and lived in France, Chile, USA and Belgium. Currently I am trying to settle down in Brazil. I am "retired", even though now I dedicate more hours "working" for my investments than I ever worked in the real labor market where I used to work in IT and Banking. I am a family man, I have a lovely wife, Bieke and four male sons. I have humble tastes, I like to stay home and read about companies and investments and build my new house. I started investing at 25 before the internet bubble exploded. I did not know much about investing and liked technical analysis so my results were pretty bad. Fortunately I did not have much to lose. Some years later in 2006 bored of doing only real state investments and with quite a lot of money saved I opened an account in a cheap and excellent online broker and started again. This time I did not want to commit the same mistake, so I decided to follow a model. I heard that Warren Buffett was the best at making money via stocks so I started by reading a lot about him, all of his shareholders letters and several of the books that he recommended. I learned a lot, started applying his investing principles and reading a lot of 10K's from lots of different sources of information. I basically started buying very good and cheap companies and holding them for ever if possible and if nothing changed fundamentally. When the housing crisis started I was more than 75% cash. At that time I identified good companies at incredibly cheap prices so I invested 100% in stocks instead of only 25%. In less than I year I doubled. By the second semester of 2009 I turned my software company into an investment vehicle and dedicated myself full time to it. My wife and I decided to change our lifestyle and moved from Belgium to the beach in Brazil, north east coast (see pictures here www.kuchita.com). The goal was to keep fixed costs low in order to be able to live with a minimum 6-8% yearly return but specially to move away from the inhuman life of civilisation and to have finally some peace and sunny weather to concentrate better on investing. Now I can think and study about companies as long as I want and I am doing great. I can finally do what I want full time and can proudly say that I have never been so happy, with my great kids and my sweet wife who supports me fully. Currently I pass most of my time building my house while I monitor my investments and prepare for the moment to make the next swing. You can see my portfolio at http://www.kuchita.com/view/sumo.php or follow my investments and their rationale on my blog http://investing.kuchita.com
Best wishes !
Todd Sullivan is a Massachusetts-based value investor and Co-Founder and General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his original thesis. His blog features his various ideas and general commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain's NY and others. He has also appeared on Fox Business News and is a RealMoney.com contributor. Visit his sites: ValuePlays (http://valueplays.net/) , Rand Strategic Partners (http://randstrategicpartners.com)
Andrew Left's Citron Research (http://www.citronresearch.com/) (formally known as Stocklemon.com) seeks to expose companies whose management is in some way misleading investors. Left digs into SEC filings, financials, management histories and other data to uncover such situations, and he is usually short the stocks he writes about. Mr. Left has been publishing for 7 years and has created a track record that is unrivaled in short selling. Mr. Left has been cited in Barron's, Wall St Journal, CNBC and other major publications repeatedly for his work. Mr. Left was also an invited speaker at the reknown Master Investor Conference.
Visit: Citron Research (http://www.citronresearch.com/)
Margin of Safety Equity Research is a value-investing focused company providing equity research services, the Securities Analysis System investment software, stock valuation models, and other financial resources for value investors. Members of our subscription services have access to the Margin of Safety value-oriented portfolio and discounted access to our software.
We apply Buffett's and Charlie Munger's four filters in selecting stocks as part of a concentrated portfolio (10-15 equities). Criteria for selecting companies are:
1.They are strong businesses; as defined by high long-term cash generation, above-average return on invested capital, possession of favorable underlying economics and a durable competitive advantage, good financial health, and above-average profit margins
2. We understand the business
3. They are run by competent management
4. They are available at bargain prices.
We require a 25-50% margin of safety, depending on the stability and economic moat for the company.
In addition to equity research services, we are a member of the Gerson Lehman Group Expert Counsel of Advisors and provide research/consulting services to investment banks.
An avid investor since the age of 10, Ryan Edward has appeared on Fool.com, GuruFocus.com and InvestSide.com. He is quoted frequently on Yahoo! Finance, and publishes regular articles on SeekingAlpha.com. Ryan has a fresh perspective and a passion for making money. He has a track record of identifying value stocks that outperform the market.
I am an individual investor that eagerly digs into a company's financial data to see what I can learn about it. Deciphering the mysteries of financial reports has been a long-term quest that began when a pre-Internet mailman unexpectedly left some company's formal report at my door. Over time, I synthesized various approaches for fundamental analysis into one ever-evolving methodology to assess performance and value.
The Gauging Corporate Financial Results blog describes the analyses I perform and the methodology itself. Writing about these efforts helps focus my thoughts. I share them with the hope I might be helping other investors. I know I benefit from reader feedback.
Dave Fish is the author of the U.S. Dividend Champions spreadsheet (and PDF), which is updated at the end of each month...and lists companies that have increased their dividend payout for at least 25 consecutive years. (Separate tabs list "Contenders" that have increased their payouts for 10-24 years and "Challengers" that have increased their payouts for 5-9 years.) http://dripinvesting.org/Tools/Tools.asp
The Rational Walk was created to provide a platform to publish equity research based on value investing principles. We believe that diligent and thorough security analysis has the potential to identify opportunities in the financial markets for the small number of investors who truly have long time horizons and the appropriate temperament to ignore short term market fluctuations. The Rational Walk’s extensive coverage of Berkshire Hathaway has been mentioned in several news articles.
Welcome to my author's site.
I hope you find my articles interesting and informative.
A man-with-a-plan, I am utilizing knowledge gained from my business degree 25+ years in the business world and a similar number of years of investing experience, to manage my investments.
I have created and maintain a stable and growing portfolio of individual US listed dividend growth stocks, over 30% of which are non-US based but headquartered in Canada, Great Briton, the Netherlands and Australia.
I believe that asset allocation is the primary decision an investor must make considering his objectives, time frame and risk tolerance. I am fully invested and 90% of that is in stock.
I believe that the small individual investor is often best served by low cost index funds. Stock picking, attempted market timing and frequent trading usually work to the disadvantage of the average small investor. However, you may define small as you like and nothing prevents any investor from emulating the market greats of our time such as Warren Buffett or Peter Lynch. Greater rewards can be obtained by buying and holding individual securities if one has background, the interest, the time and the disciplne to do so in an effective way.
There are many ways to make money in the stock and bond markets. My approach to is to take ownership positions in successful large cap companies and hold them a number of years. Dividend Growth Investing is a conservative approach which involves lower than average risks and higher than average rewards.
My writing experience began when I was a senior in high school. I was a local stringer for Maine's largest newspaper and covered school and amatuer sports. Concurrent with a successful career in the business world I wrote magazine articles, journal articles, short fiction, poetry and a devotional book.
A long time student of security markets I immensely enjoy the opportunity to write for Seeking Alpha, which is a very high quality well run organization with excellent editorial support. It is also possibly the best business forum on the internet and I am proud to be a part of it.
Most of my articles focus on several topics:
Income Portfolio Strategy
Canadian Banks and Telecoms
Best regards and good luck!
-- Bob J
I am an individual investor and the author of seven eBooks on dividend growth investing. I try to help self-directed individual investors profit from stock investing. I contribute articles and studies to both Seeking Alpha and Daily Trade Alert. I hold an undergraduate degree in physics from Holy Cross College and a JD from Georgetown University. My wife Sue and I live in beautiful Canandaigua, NY.
Follow me on Twitter: @NewConstructs
David is CEO of New Constructs (www.newconstructs.com), an independent research firm that leverages proprietary technology to find key insights from the Financial Footnotes of 10Ks and 10Qs. Having analyzed over 70,000 annual reports and their Financial Footnotes, New Constructs helps protect clients from the red flags/unknowns in SEC filings.
David is a distinguished investment strategist and corporate finance expert. He is a member of FASB's Investors Advisory Committee, and he is author of the Chapter “Modern Tools for Valuation” in The Valuation Handbook (Wiley Finance 2010).
David's insights into the markets and his stock picks have been popular with a wide variety of media outlets.
Geordy is a value investor and freelance writer whose investment approach draws heavily from the teachings of Warren Buffett, Peter Lynch, and Benjamin Graham. He believes that while the way we trade stocks will continue to evolve over time, the fundamental philosophy of buying great businesses at great prices will never change. He writes for Seeking Alpha because it offers the best marketplace of investment ideas on the Internet bar none, and he considers it a privilege to be a part of this great community.
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Only days after the S&P 500 crashed to the depths of hell at 666, the Hoffman brothers launched Wall St. Cheat Sheet: one of the fastest growing financial media sites on the web. Like a samurai, our mission is to cut through the bull and bear sh** with extraordinary insights, a fresh voice, and razor-sharp wit. We provide the highest quality education and information for active investors and financial professionals. We are official contributors to Yahoo Finance, CNNMoney, the Chicago Mercantile Exchange, Business Insider, The Huffington Post, Minyanville, SeekingAlpha, and Zero Hedge. Our work has been cited in top finance and trading outlets such as The Wall Street Journal, MarketWatch, Financial Times, The Big Picture, Real Clear Markets, The Atlantic, Business Insider, The Huffington Post, Infectious Greed, DealBreaker, CBS MoneyWatch, Kiplinger, Investment Postcards, ZeroHedge, Business Pundit, TraderFeed, The Kirk Report, AbnormalReturns, and more.
For the Premium Complimentary Trial: http://wallstcheatsheet.com/premium/
Damien Hoffman, Esq. decided to launch a financial website and exclusive subscription-based newsletter after achieving a 63% return versus a -48% return for the S&P over a nearly two year time frame as a co-founder of popular stock blog SmartGuyStocks (member of the Forbes Business and Finance Blog Network, and certified by Seeking Alpha). Mr Hoffman is currently Editor-in-Chief of Wall St. Cheat Sheet and trades full-time. After graduating early with honors from Duke University, he raised private equity with friends during the late Nineties to launch a successful start-up. Mr. Hoffman went on to work for boutique sports investment bank Inner Circle LLP where he worked on the sale of the NBA franchise New Jersey Nets to Brooklyn real estate development firm Forest City Ratner Companies (NYSE: FCE-A). Mr. Hoffman also graduated with honors from the University of Miami School of Law as a Dean’s Merit Scholar. He clerked at the Florida Supreme Court for the Honorable Justice Kenneth Bell and Central Staff. In 2006 at Harvard Law School he gave a guest lecture entitled, “Business and Law in the New Independent Music Industry.”
Derek Hoffman joined efforts with his brother to launch Wall St. Cheat Sheet after a decade of investing experience and outperforming the S&P 500 over the past 5 years. Mr. Hoffman is currently the CEO of Wall St. Cheat Sheet and trades full-time. He is a regular contributor to CNNMoney. His long-term investments and short-term trades have yielded extraordinarily successful results: double digit annual returns. Mr. Hoffman has handled media investment and tactical strategy planning for Procter & Gamble and Gillette’s national asset portfolio. He has also worked in private wealth management for Morgan Stanley. Mr. Hoffman graduated early from the University of Michigan’s world class economics department.
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