One of the great blessings derived from writing my book has been the many friends I’ve made. Friendship is such a blessing! One dear friend, David, corresponds with me from time to time and he wrote me this past week with a question. At the conclusion of the discussion, he suggested that maybe I use the conversation as the content of a blog post. David beat me to it in that I was going to ask him about sharing the matter in a blog post. Thanks, David! […]
In my book, “Choose Stocks Wisely, I present my balance sheet method for investing which includes tests for balance sheet quality. A balance sheet needs to be amply liquid in terms of working capital and not overly leveraged (indebted), and ideally have assets largely tangible in composition. This week, I want to share some recent news articles concerning bankruptcies in the oil and gas sector. […]
Hello friends. I hope you are having a good Saturday.
I’ve talked about the goodwill asset before here in a blog post and also discussed it in my book, “Choose Stocks Wisely.” Goodwill is an intangible asset that is recorded by an acquiring company. When a company acquires all or a part of another company, it may pay more than the fair value of the assets identified on the balance sheet. Note, that I wrote “the fair value of the assets ‘identified’ on the balance sheet.” […]
Hey friends. I hope this last Saturday in February 2016 finds you well. Wow, 2016! Each year about this time I’m really struggling with getting adjusted to the new year number; I’m still working with 2015. About the time I’m completely adjusted to what year it is, it has rolled over to the next one. You don’t have that struggle, do you:) […]
We live in a world that seems more unsafe by the day. In like fashion and in my view, the stock market seems to face more uncertainties than I recall. Yes, the Great Recession of 2008 and 2009 saw such a collapse in stock prices and a run on the banks was headed off by massive government stimulus and Fed activity which has almost been continuous since. […]
Accrual accounting is an important concept to investors’ understanding of earnings. Since earnings drive stock prices, understanding something about how earnings are measured is surely relevant to investing in common stocks. Accrual accounting is the basis by which earnings are measured under generally accepted accounting principles (GAAP). […]
Last week, I shared a link to Jake Taylor’s interview of me with regard to “Choose Stocks Wisely.” During that interview, Jake asked me about my view as to “why” the balance sheet is so disregarded in the market relative to the attention given to earnings. I’m going to address this question again today in a bit more detail. […]
Al, a friend and reader of my book, “Choose Stocks Wisely,” graciously contacted Jacob (Jake) Taylor a short while back with regard to interviewing me about my book. Jake then reached out to me and his skype interview with me took place this past week. A link to the interview video is at the end of this post. […]
My entire practice toward stock investments could be stated as “buy” primarily on the balance sheet and “sell” primarily based on earnings. I mention in my book, “Choose Stocks Wisely,” that earnings drive the stock price. Earnings don’t define value under my approach (the balance sheet does) but earnings will be the likely stock price driver if I’m to experience solid returns. […]
Hey dear friends; I wrote about oil and gas just recently but will share a few remarks here again today. I’ve received several good e-mails from readers of my book, Choose Stocks Wisely, in recent weeks. These e-mails have often queried about this company or that one, where the person was noting how discounted a stock was, often trading well below my adjusted floor price. In almost every situation, the company involved was in the oil and gas services sector. […]
