Why We Sold Walmart-It’s Not Why You Think

Introduction Walmart’s stock price took a bath early last week, and there are a lot of opinions regarding where the stock price now sits.  The catalyst was their 4th quarter and fiscal year-end 2018 annual report (note: Walmart has a January 31 fiscal year end).  The following headlines courtesy of “Google Finance” illustrate the variance Read more about Why We Sold Walmart-It’s Not Why You Think[…]

Has Amazon (Jeff Bezos) Taught This Old Value Dog a New Trick?

Introduction There is the old adage: “you can’t teach an old dog new tricks.”  Well, I have been a “card-carrying” and fully committed value investor for more than 45 years now.  I think that qualifies me as an “old” value investing dog.  But more to the point, I have been consistently following and practicing the Read more about Has Amazon (Jeff Bezos) Taught This Old Value Dog a New Trick?[…]

Demystifying the Amazon Valuation Dilemma

Introduction Amazon: the Valuation Dark Side It is no secret that Amazon (AMZN) has been a disruptive force, especially relating to the retail sector.  On the other hand, the company is also an enigma to the value focused fundamental investor such as yours truly.  Over its entire operating history as a publicly traded company, Amazon Read more about Demystifying the Amazon Valuation Dilemma[…]

How to use F.A.S.T. Graphs™ to value high-growth stocks such as Amazon or Google (Alphabet)?

I recently received a question in the MisterValuation forum asking for an article on Google (GOOGL) and Amazon (AMZN).  The subscriber indicated they were having a hard time utilizing F.A.S.T. Graphs™, especially with Google, to figure its valuation. I felt this was a reasonable request because it afforded me the opportunity to provide insights on Read more about How to use F.A.S.T. Graphs™ to value high-growth stocks such as Amazon or Google (Alphabet)?[…]

Wal-Mart: Fairly Valued Retail Powerhouse

This Bentonville, AR based mega-retailer perennially ranks amongst the top of the Fortune 500 list and likely needs no introduction. In lieu of a business summary, we thought it might be interesting to highlight some prominent statistics. For instance, every week more than 245 million customers visit Wal-Mart’s (WMT) 11,000 stores under 69 banners in Read more about Wal-Mart: Fairly Valued Retail Powerhouse[…]

How I Explain Amazon’s Stock Performance

Introduction Amazon (AMZN) is a stock that seems to defy conventional wisdom about how a stock is, or should be, valued.  Fundamental investors, like yours truly, recognize and respect the importance of the earnings and price relationship.  Moreover, I will be so bold as to emphatically state that in the long run profitability (earnings) will Read more about How I Explain Amazon’s Stock Performance[…]

Aflac’s (AFL) Fair Value PE Ratio Should Be Double, and So Should Its Price

This is the third in a series of articles that have been designed to provide investors greater insights into the proper understanding and utilization of the PE ratio as a valuation measurement tool. With this iteration we’re going to look at Aflac (AFL) as our example for using the PE ratio to identify significant undervaluation.  Read more about Aflac’s (AFL) Fair Value PE Ratio Should Be Double, and So Should Its Price[…]

Amazon is a Great Growth Stock But Extremely Overvalued When its PE Ratio is Interpreted Properly

The PE Ratio – Its Importance as an Investment Tool We believe that one of the most important and useful tools for the serious investor, is the price earnings ratio or PE.  It is, however, one of the most misunderstood and misused tools. We believe that learning how to use it properly and understanding its Read more about Amazon is a Great Growth Stock But Extremely Overvalued When its PE Ratio is Interpreted Properly[…]