Broadridge Financial Solutions, Inc. (BR) is a capital light business in which ~65% of its revenue is recurring. It has a track record of generating strong Free Cash Flow (FCF) although the second half of the fiscal year is when BR generates the bulk of its annual FCF. The bulk of a BR investor's long-term [...]
We are currently witnessing an environment in which the valuation of many companies has become detached from the underlying fundamentals. Even if you invest in a high quality company it is important to remember that if you grossly overpay you are most likely to experience substandard investment returns. Although I have indicated in recent articles [...]
Becton, Dickinson and Company (BDX) released Q1 2021 results on February 4th in which FY2020 guidance was increased. BDX has reduced its debt to the extent where Moody's has raised the company's senior unsecured long-term debt rating to an investment grade level after it had been downgraded following two major acquisitions in 2015 and 2017. [...]
There are several reasons to like Lockheed Martin Corporation (LMT) as a long-term investment. The company is growing, it is consistently profitable, it generates strong free cash flow, it is aggressively repurchasing shares, it has an attractive dividend yield, and it is attractively valued. As a long-term investor I see much to like about LMT [...]
Nike, Inc. (NKE) is a wonderful company. Shares, however, currently appear to be richly valued. I wish to retain my shares in perpetuity, and therefore, am not prepared to sell my shares at a profit, crystalize my gains, and incur the related tax liability. I am, therefore, employing a conservative short-term out-of-the-money covered call option [...]
I view Chevron Corporation (CVX) as the premier major integrated oil and gas industry participant. CVX is certainly experiencing headwinds but the company has a strong balance sheet and is being well managed to weather the difficult business environment. I anticipate that CVX's share price will trade within a narrow range in the short-term and [...]
This is my January 2021 FFJ Portfolio report. The portfolio was created in January 2017 for the purpose of demonstrating how investing in high quality companies with competitive advantages and with a record of consistently increasing dividends can assist investors in reaching their long-term financial goals without the need to speculate or to chase dividend [...]
Lockheed Martin Corporation (LMT) released strong FY2020 results and encouraging FY2021 guidance on January 26th. Despite this, the share price has pulled back. It would appear that many retail investors would much rather speculate on high risk companies. The company's valuation is so attractive I have added to my existing position. In recent Lockheed Martin [...]
The degree of irrational exuberance we are witnessing suggests many investors are focusing on the 'hype' and are paying little heed to reality. The 'fear of missing out' is what is likely driving many investors to 'invest' in companies or instruments which they do not fully understand. The valuation of many companies with no proven [...]
At The Goldman Sachs Group Inc.'s (GS) January 29, 2020 Investor Day, senior management laid out the company's strategic roadmap and goals. Management indicated that GS was entering an era of transformation and opportunity which required a new operating approach. Four areas of focus (Transaction Banking, Third Party Alternatives, Digital Consumer Bank, and Wealth Management) [...]
