Introduction This article is an update to my original article on Celgene (CELG) published on June 22, 2017. Celgene reported their financial results yesterday October 26, 2017, and although the quarter was good, lowered guidance crushed the stock price. In my opinion, some of the sag in price was justified, but for the most part Read more about Celgene: Growth At A Reasonable Price Even On Revised Guidance[…]
Introduction Financial metrics such as P/E ratios, price to cash flow ratios, PEG ratios, price to sales ratios, price to book value, and many others, should be thought of as tools in the investor’s toolbox. They can all be useful when appropriately utilized towards putting together a successful stock portfolio. However, just as you wouldn’t Read more about When is the PEG Ratio Superior to the P/E Ratio? Part 2[…]
I am a fervent believer that investors are best served by investing towards a specific investment objective that suits their own unique goals, objectives and risk tolerance. In other words, investing is not always trying to get the highest possible total returns. If that were true, no one would have ever invested in bonds, CDs or other fixed income instruments.
This article is the second in a two-part series on applying the principles of value investing. In part 1 found here my primary focus was on the benefits of investing in fundamentally strong dividend growth stocks when they are out of favor, and therefore, undervalued as a result. In this part 2, I will be turning my attention to determining the fair value of growth stocks. Although the underlying principles of value investing apply, assessing the fair value of a true growth stock differs greatly from valuing a dividend paying company. In both cases, the primary focus of the value investor is on fundamentals first and stock price secondarily. […]
Choosing Common Stocks That Make Sense for Your Retirement Portfolio: Part 2
Choosing the most appropriate stocks for the common stock portion of your retirement portfolio is vitally important. In part 1 of this series found here I presented the 6 broad categories of stocks (businesses) that renowned mutual fund manager Peter Lynch presented in his best-selling book “One Up On Wall Street.” I contend that the 6 categories that Peter Lynch wrote about establish a solid foundation of understanding of what’s generally available in the common stock universe. Additionally, I pointed out that these categories were very broad, and suggested that there were significant differences between the individual companies in each broad category. […]
Introduction I’ve received several requests from MisterValuation subscribers to present some fairly valued high-growth research candidates. This article will present 14 reasonably valued selections based on high expected future growth. With the exception of 2 companies, none of these stocks currently pay a dividend. Therefore, for the most part these are pure play long-term capital Read more about 13 Fairly Valued Aggressive Growth Stocks[…]
I am a fervent believer that investment decisions should be made based on the relative merits of each individual investment under consideration. However, my anecdotal observations and experience suggests that many investors do not embrace that approach. This is especially true regarding investment decisions on common stocks. Instead of focusing on the opportunities and valuations available from select individual businesses, many investors are obsessed, and I allege blinded by generalized views or beliefs about the overall market and/or the economy. […]
In recent weeks I received several questions and comments from readers regarding my views on the appropriateness of investing in growth stocks in retirement portfolios. Additionally, and on a related topic, I have also come across numerous discussions, sometimes quite heated, about whether it’s best to invest for total return or growth of dividend income. Consequently, I thought it would be interesting to share my views and provide my perspectives on both the appropriateness of growth stocks, and/or whether it’s best to invest for total return or income growth.
Introduction Proponents of indexing as the best investment strategy seemed to take great delight in reporting how the vast majority of professionally managed portfolios (mutual funds, separately managed accounts, hedge funds, ETFs, etc.) fail to outperform the S&P 500. Therefore, they argue, it is best not to even try. Investors should simply invest in index Read more about Trying To Beat The Market Is A Fool’s Errand[…]
As I become more mature (translate: gotten older), my investment philosophy has slowly evolved into a more conservative posture. When I was a younger investor I felt I had time on my side, and therefore, was willing to take on greater risk as long as I believed that greater rewards could follow. In other words, Read more about Stocks 2014: Investing for Growth – The Power and Protection of High Compounding Earnings Growth – Part 2[…]