I always appreciate it when friends write me and share something they have run across that is informative and interesting. This week, a dear friend shared with me a news clip called “Here Are Some Valuable Financial Lessons That Are Right in the Bible.” […]
A friend sent an article link to me yesterday that I decided to pass along via my post today. It is very interesting. The article is called “TIC: The most important report you’ve never heard of.” […]
Recently, I’ve been writing about collapsing commodity prices relative to the potentially devastating negative impact on the “Investment” component of national and global economic measures of economic health. I’m certainly not enough of an expert to even start to try to assemble all the moving parts in terms of economic impact and, in turn the stock market. However, it’s got me confused enough to personally think about being far more conservative about my stock investments. […]
In the following scriptures, God describes the infinite worth of His wisdom. It makes clear that neither silver nor hidden treasure can compare to the value of His wisdom. And it is His wisdom that permits a proper perspective toward everything during our earthly pilgrimage, including money and investing. […]
Ethan Pope, a dear friend and devoted Christian man, wrote the foreword for my book, “Choose Stocks Wisely.” […]
Truths found in Scripture (the Bible) apply to all aspects of life, including investing in common stocks. The Bible is very clear about God’s position toward the proud. It is referred to as an abomination to God in Proverbs 6:17. James 4:6 states that “God resists the proud, but gives grace to the humble.” In Proverbs 16:16, we read “How much better to get wisdom than gold! And to get understanding is to be chosen rather than silver.” Proverbs 16: 18, 19 tells us “Pride goes before destruction, And a haughty spirit before a fall. Better to be of a humble spirit with the lowly, Than to divide the spoil with the proud.”
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I want to continue a theme I started two weeks ago with a post titled “Making the Minimum Credit Card Payment” and followed-up last week with another post called “Choosing Weak Balance Sheets and High D/E Ratios.” I know some of you read the May 27 Bloomberg piece linked next because you wrote me about it this past week (Thank you for that):
http://www.bloomberg.com/news/2014-05-26/bad-credit-no-problem-as-shares-of-balance-sheet-bombs-rise-94-.html
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I received a very nice note from Joe at my website recently. I’m including the following excerpt in this post. Joe wrote, “What you have also done though is opened my eyes to use this (Adjusted Floor Price Scorecard) for dividend-paying stocks. As you said in your book, the momentum money has piled into these stocks creating a mismatch between adjusted floor price and price today. With that being said, I still see application where I get ‘CONTINUE’ for ‘Liquidity’ and for ‘Solvency’ (from your Scorecard, parts A and B).”
Joe asks, “Do you have any suggested applications of your (Scorecard) spreadsheet to large-cap dividend-paying stocks?”
Joe asks a great question. I’ll respond to Joe’s specific question toward the end of this post but first I’ll use the essence of his question to hone in on my Adjusted Floor Price Scorecard further. Please note that the discussion here will only make sense if you have read my book, Choose Stocks Wisely, and sought to apply the Adjusted Floor Price Scorecard, revealed and explained in the book.
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Observing the investing behavior of my parents while I was growing up, I came to think that investing in anything other than a certificate of deposit (CD) was too risky. In fact, during my youthful years, I embraced the notion that people who invested in the stock market were gambling.
Later on, it occurred to me that all publicly-traded corporations are owned my stockholders. If the corporations had no stockholders, there would be no corporations. This would mean the absence of jobs and collapse of the economy. Well, if investing in stocks is actually gambling, it would not take long before corporations would cease to exist because there would be fewer and fewer people who would be willing to gamble away their hard-earned money.
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