Investment Ideas & Company Research

Finding Value in 4 Big Cap Tech Stocks

Posted on

In the process of scanning the investment landscape to find value amidst the all time highs for the indices, I’ve noticed that a number of big cap tech stocks are priced at low valuations relative to their earnings and free cash flow, measured on an absolute basis and relative to their own historical valuations. Some of these stocks are producing huge amounts of free cash flow and are paying (and growing in a few cases) their dividends. These are good companies […]

General Thoughts

Value Line Weekend and Searching for Ideas

Posted on

I spent a lot of time going through Value Line yesterday looking for ideas. I like Value Line for the weekly screens they provide, and I also like paging through the stocks one by one. Anyone can pull up a screen of the cheapest stocks by P/E, P/B, etc…, but there is something more enjoyable about flipping through actual pages of paper (I do the same with 10-K’s and annual reports: much more enjoyable to read a hard copy than […]

Uncategorized

4 Examples of Cheap and Good Stocks

Posted on

My last post answered a reader’s question on how to tell the difference between a cheap stock that’s junk and a cheap stock that has real value. I answered her question by first saying how it is absolutely crucial to make sure that you are “fishing in cheap ponds”. By ensuring that you’re restricting your search to only stocks that are cheap (low P/E, P/B, or EV/EBIT ratios), you are giving yourself a built in advantage, as on balance, these […]

How to Improve Results

How to Filter Good vs Poor Companies in the Cheap Universe

Posted on

One of my readers who is interested in learning more about the fundamentals of value investing emailed me the following question: “I get the idea of buying undervalued stocks but how do you know if they are undervalued or just junk that you wouldn’t want to invest in?” This is one of the key questions that every value investor deals with. And investors approach this question in various ways. Every value investor wants a bargain, and every value investor says […]

How to Improve Results

Invert, Always Invert: Where do Investment Returns Come From?

Posted on

Yesterday I wrote a post that started with a quote that Charlie Munger has often used: “Invert, Always Invert.” The idea is to think differently than the crowd. Ben Graham said that our results are based on our methods, not whether the crowd agrees with us or not. However, the structure of the market is such that thinking in a contrarian way often leads us to areas that offer greater investment results. I believe that contrarianism is a necessary, but […]

Ben Graham

Invert, Always Invert: More on Thinking Differently

Posted on

“Invert, Always Invert.” -Carl Gustav Jacob Jacobi, 19th century mathematician, using the phrase to describe how he thought many problems in math could be solved by looking at the inverse. Charlie Munger often uses this same quote to express how investors can likewise benefit by looking at the inverse, or opposite, of what others are looking at.  Yesterday I wrote a post on Buffett and how he achieved 50% returns, and “guaranteed” that he could replicate those returns on a […]

General Thoughts

How Buffett Made 50% Per Year? By Thinking Differently…

Posted on

A few years ago at the Berkshire Hathaway Annual Meeting, Warren Buffett said something very interesting. He said that he personally knows of a half dozen or so people who could make 50% per year managing a relatively small amount of money. I came across a reference to this comment a few days ago and I began thinking to myself: I wonder who those 6 people are? But even though it’s interesting to consider, there are more important takeaway’s from […]

General Thoughts

John Huber Background Info Part II

Posted on

This is part II of a 2-part post. I got a request from a reader to discuss some info on how I started my firm. My readers have plenty of other things going on, so I thought I’d break the post up into two parts, to make it easier to read. The first part had more of a background on me, this post will briefly discuss how I structured my investment firm. As I said in part I, I don’t […]

General Thoughts

John Huber Background Info Part I

Posted on

I got a request from a reader to discuss some details on how I started my investment firm, so I thought I’d write a post with some brief background info. Most readers don’t know much about me, so I thought this might be a good idea. I’ll divide this post into two parts, and I’ll try to make this brief, but if readers ask for more info, I’m happy to elaborate. My main goal with this blog is to share […]

General Thoughts

Value Investing: All Roads Lead to Rome

Posted on

I read an article this morning by John Mihaljevic, who runs the excellent ManualofIdeas.com. His article was called Value Investor or Value Pretender: Which are You?  The article is written in tongue-in-cheek fashion using 10 points that might tell you if you’re not a true value investor. David Merkel, fellow blogger and excellent value investor, then wrote an interesting counterpoint at his Aleph Blog. I got to thinking how it’s interesting how two value investors who both write about the […]