Three high quality companies recently released earnings and guidance. Despite strong results and favorable earnings projections, investors have bid up the stock price of these companies to levels where there is a disconnect between the underlying fundamentals and the company's valuation. Summary Even investing in high quality companies can result in inferior investment returns. Investing [...]
Summary Even investing in high quality companies can result in inferior investment returns. Investing in a high quality company does not mean invest at any price. Pay particularly close attention to valuation levels. We are in the late stages of one of the longest bull markets in US history. Investors should be cautious when making [...]
This is my 2018 semi-annual recap and June 2018 dividend income update on the FFJ Portfolio. This portfolio was created in January 2017 for the purpose of demonstrating how investing in well managed companies with competitive advantages can assist investors in reaching their long-term financial goals without the need to speculate or to chase dividend [...]
Paychex (PAYX) released its Q4 and FY 2018 results and FY2019 guidance on June 27, 2018. This is a follow up to my March 27, 2018 article at which time I indicated I would initiate a position and hold the shares in the FFJ Portfolio. Introduction My wife and I had the good fortune of [...]
Ingredion (INGR) released its Q1 2018 results May 3, 2018 and provided revised guidance for FY2018. The stock price has dropped ~25% since late January 2018 and in this article I provide my opinion on whether INGR now presents an attractive buying opportunity. Summary Ingredion has pulled back ~25% from its 1 year high of [...]
Summary Ingredion has pulled back ~25% from its 1 year high of $146.28 set late January 2018. When Q1 results were released, management lowered its FY2018 adjusted EPS guidance from that provided when FY2017 results were released. It is facing headwinds in the form of higher production costs caused by inconsistent demand in the US [...]
The following is a list as at June 24, 2018 which reflects all the companies in which my wife and I own shares (not just those in the FFJ Portfolio). It does not reflect the number of shares per company we own nor our average purchase price. [...]
Brown-Forman (BF) released its Q4 and FY 2018 results June 6, 2018. FY2019 projections were also provided but management has indicated it is difficult at this juncture to provide a precise full year outlook given retaliatory action foreign governments are likely to take in response to tariffs imposed on goods imported to the US. Summary [...]
Summary Brown-Forman (BF) is a high quality company which has richly rewarded shareholders over the years. BF is a classic example of why exclusive reliance on stock screeners to identify investment opportunities is short-sighted. The company faces uncertainty as a result of foreign countries imposing retaliatory tariffs in response to ill-advised tariffs announced by the [...]
FedEx (FDX) released its Q4 and FY2018 results on June 19, 2018. The heightened risk of protectionism is counterproductive to economic growth and could negatively impact FDX's business in the short-term. In addition, Amazon's entry into the package delivery service industry is a risk FDX must contend with. FDX, however, is a well run company [...]
