Introduction Every investor in common stocks is faced with the challenge of knowing when to buy, sell or hold. Additionally, this challenge will be approached differently by the true investor than it would by a speculator. But since I know very little about speculation (trading or market timing), this article will be focused on assisting …
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The Essence of Valuation is Soundness Not Rate of Return
Introduction on Stock Valuation When it comes to writing about investing in common stocks, my favorite theme typically revolves around valuation. In fact, I once had a reader dub me “Mr. Valuation.” Which, I might add was very flattering to me. Moreover, in the context of discussing valuation there are normally three concepts that are …
Dividend Champions a Rare Undervalued Opportunity
We believe that based on earnings, 2012 is starting out with the stock market undervalued. We believe in the long-term ownership of great businesses purchased at sound and attractive valuations. Consequently, we view the stock market as merely the store that we shop at in order to buy the businesses we want to own. Furthermore, …
A Primer on Valuation: 8 Examples of How Earnings Growth Drives Dividends and Returns
Valuation Based on Fundamentals In order to prudently answer the question of when to buy a stock, an investor first needs to know the value of the company behind the stock. At the most basic level, a company derives its value based on the fundamentals behind the business it operates. Focusing on, and calculating the …