Introduction Recent volatility in the primary stock markets has changed the valuation landscape quite a bit. It was not too long ago that people were talking about stock market bubbles and massive overvaluation. Personally, I have felt that much of the concerns about overvaluation were exaggerated. I want to be clear, I did believe that […]
Introduction Investing in anything comes with a degree of uncertainty because all investing returns happen in the future. And even though the future is unpredictable, the future is what everyone that invests is investing for. These realities present important challenges that every investor must face and deal with in order to succeed. But even though […]
Introduction In order to understand what the intrinsic value or fair value of a common stock is, you must think like a long-term business owner and not like a stock trader. Additionally, you must think like a business owner that has no intention of selling their business. Put another way, your business generates your livelihood. […]
Introduction The current market environment is presenting many challenges to the conservative retired investor in need of current income. Interest rates are near all-time lows and the valuations of many blue-chip dividend growth stocks have become extended. Consequently, it is becoming very difficult to find quality investment opportunities that can provide safety through sound valuation, […]
Introduction I’ve spent my entire investing career looking for exciting investment opportunities in fairly valued or undervalued stocks. In the same vein, I have been an ardent student of how to accurately value a business. Perhaps the most important lesson I have ever learned on how to do that correctly is to approach the analysis […]
Introduction Utility stocks are generally low-growth high-yield investments. As I will soon illustrate, both Southern Company (SO) and AGL Resources Inc (GAS) neatly fall into that category. These low-growth and above- average dividend yield characteristics have led me to only invest in utility stocks when two important conditions are met.