WalMart ($WMT) Margin of Safety per Share Growing Again
This wealth creation chart illustrates why Wal-Mart (WMT) stock has largely underperformed the S&P500 index in the past 5 years - until recently. Despite the economic boom we had from 2002 to 2006, WMT failed to take advantage of the good economy, and its economic margin (EM) has steadily declined (red
The following analysis is from the folks over at ValueExpectations blog. We do not own AAPL today because expectations have gotten too high for our tastes. Remember that a great company does not always make a great investment. (see here). By understanding the embedded expectations a company must deliver to justify its current trading price, we develop a “hurdle rate” to quickly determine if the company’s expectations are too rich or too low. Back
Focus On The Short-Term Hurts Companies – Bill George
One of the important qualities of ValueAligned companies is that its management team and its processes are organized around maximizing "economic value", called "intrinsic value" by Warren Buffett, not some vague notion of maximizing "shareholder value", which almost always degenerates into short-term management of accounting earnings, or "making" the number. The sad result of this is that public companies rarely overcome what the Aspen Institute calls "short-termism". The statement, “Overcoming Short-termism: A Call for a More Responsible Approach
HT: How Fair Value and Target Price Differ - Morningstar - Ask the Analyst Shared via AddThis We are passionate about value investing at Rapidan's Berk Advisory, where we manage separately managed accounts for our clients. We provide comprehensive, institutional level investment portfolios of stocks - not funds - but direct ownership of stocks of great companies. These services have not been generally available to individual investors with small amounts to invest. We've opened up the investment secrets
