How Sweet is It?

Today’s blog looks at a well-known, but average growing company – Hershey. Once again, we see the strong relationship between the rate of change of earnings and shareholder returns. Today’s video looks at Hershey based on fundamentals. Best when viewed in full youtube screen. When you pay attention to fundamentals, you can develop an enlightened[…]

Electronic Arts – a Game Play

Electronic Arts paints a very unusual fundamental long-term graph. Many are surprised by the cyclicality this company displays. From fiscal 1991-2000, Electronic Arts was a growth stock. However, since fiscal 2000 it matured into a more cyclical enterprise. Today’s video looks at Electronic Arts first over its growth years, then over its more cyclical period. Note[…]

Modern Apple of Their i

This week’s blog will be dedicated to educational pursuits. Actually, this entire blog’s history has been committed to that end. This week, I intend to lay the foundation for sound investment analysis, based on fundamentals. The Fundamental Research Analysis Tool needs to be viewed as a “tool to think with.” It’s not designed to provide[…]

Price Can Lie!

Warren Buffett once lamented: “For some reason, people take their cues from price action rather than from values.”Then he later added: “The dumbest reason in the world to buy a stock is because it’s going up.” Warren was trying to teach us to focus on intrinsic value, rather than current market value. Today’s video separates value[…]

Definition of Appreciation

My favorite definition of appreciation is when others appreciate what you have more than you do. This is how shrewd investors find bargains. Warren Buffett once said, “You can’t buy what’s popular and expect to do well.” Today’s video looks at valuation from the perspective of undervaluation. Best when viewed in full youtube screen. Disclosure: Author[…]

Valuation Matters

Valuation Matters In my opinion, there are two primary factors that determine long-term returns. The rate of change of earnings growth and the price or valuation you pay to buy those earnings. This week we will focus on several consequences of valuation. How overvaluation reduces returns and how undervaluation can enhance returns. Today’s video looks at[…]