A common question I receive is how I identify new companies to research and whether I use stock screeners. I use the free version of the Finviz stock screener sparingly. Stock screeners are not exclusive to a single user, and therefore, any stock screener output is readily accessible by all paying subscribers. I, therefore, derive [...]
Should you invest in a company with negative or negligible shareholder equity? Calculate shareholders’ equity by subtracting total liabilities from a company's total assets; both are on a company's Balance Sheet. Negative shareholder equity indicates a company's total liabilities exceeds its total assets. In many instances, this is a sign of financial distress. Not everything, [...]
Had I been much more mature when I was younger, I would likely now have a much larger investment portfolio. Alas, my priorities were much different decades ago. Allow me to regale you with some of my high school and undergraduate degree education experiences. Although I enjoyed high school and my undergraduate Economics university program, [...]
I have made my fair share of errors of commission and omission over the years! One of my errors of omission is not initiating a Cintas (CTAS) position when I looked at it in this November 10, 2017 post. On August 16, 2016, shortly after I retired, CTAS announced its intent to acquire G&K Services, [...]
Following the release of Q3 and YTD2024 results on August 26, 2024, I disclosed the purchase of 100 HEICO (HEI and HEI-a) Class A shares @ ~$189.47 in a 'Core' account within the FFJ Portfolio in my August 27 post. On October 28, I purchased an additional 100 Class A shares @ ~$195.58 through the [...]
Despite the following impressive statistics, equity exchange traded funds have disadvantages. Assets Under Management (AUM): In October 2024, AUM were in excess of ~$13T and had experienced a ~20% cumulative annualized growth rate (CAGR) since 2008. Number of ETFs: Over 12,000 ETFs listed globally. Market share: ETFs have more than doubled their market share relative [...]
I currently have insignificant PepsiCo, Inc. (PEP) exposure within a retirement account for which I do not disclose details. As evidence of how little interest I have in this company, I have not reviewed this holding since this July 12, 2022 post. I strongly suspect that world-class athletes rarely consume PEP products. People who lead [...]
In my September 28, 2024 How Stock Based Compensation Distorts Free Cash Flow post, I state that I have been giving more thought to how stock-based compensation (SBC) distorts Free Cash Flow (FCF). In subsequent posts that are accessible through The FFJ Archives, I look at a company's FCF using two methods. The first method [...]
I last reviewed Becton Dickinson (BDX) in this August 6, 2024 post at which time I thought the company was on the path to improved returns; BDX had recently released its Q3 and YTD2024 results and revised FY2024 guidance and announced its plan to acquire Edwards Lifesciences' Critical Care Product Group. On September 3, [...]
I am currently re-reading Richer, Wiser, Happier How the World's Greatest Investors Win in Markets and Life by William Green, a book listed in the Books section of this blog. Over the years, the author interviewed many of the world's prominent investors. They spoke candidly about their setbacks and challenges and shared the most valuable [...]