Sherwin-Williams (SHW) is a terrific company with all the growth and consistency characteristics that I prefer. Historically the company has grown at double-digit above-average rates. However, since coming out of the Great Recession the company’s earnings growth rate has accelerated significantly. Consequently, Sherwin-Williams has been trading at uncharacteristically higher valuations than normal since 2013. On …
SHW
What Will Happen To the Stock Market When Interest Rates Rise? Part 1
Introduction Interest rates have been in a freefall for the better part of the past two decades. Moreover, the yield on the 10-year US Treasury, which is the flagship interest rate benchmark, has mostly been below 2% since the beginning of 2012. The 10-year Treasury note did reach 3% by the end of 2013 but …
How Can You Avoid Value Traps In this Market?
Introduction When the stock market turns bad, like it has been recently, investors find it extremely difficult to remain positive. As a result, people tend to be more cynical during bad times than they would normally be during better times. When this happens, it becomes all too easy to paint every stock in the stock …
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 …