Fed Ex corporation released guidance yesterday on where their business and financials were headed. Fortunately, for people like me, an opportunistic predator of the stock market; this was excellent news. FedEx has a wide moat so it passes my first test. It also has very large market cap; there goes test 2. Then it was … Continue reading Fed Ex On Sale!
In a previous post; I discussed the role of Moat and how moat can guide you to a golden egg in the best of times and the worst of times. There is one key problem with moat though; it is exceedingly subjective. What I might consider to be a wide moat; you may not and … Continue reading Market Cap is Key
Now let's explain why and how. The time value of money concept is relatively new and originates in the 19th century. Before then the primary means of exchange was gold. The price of gold was relatively fixed and only changed in value when more was discovered, or if Pirates raided a ship and removed from … Continue reading Time is Money
What is moat and why should you consider it when you invest? One of my number one filtering criteria for any security is their moat. Moat is very subjective, but generally you can get broad consensus on the quality of a company's moat. Story time! I first discovered the concept of moat when Warren Buffet … Continue reading The Moat Leads to the Castle
AT&T has surprised me this morning as it has been consistently overvalued due to the demand for it's high paying dividend. You see; when a company pays a reasonable dividend; investors, through supply and demand, push the price upwards to a more reasonable level of return, which is usually 2% to 4%. So, if you … Continue reading Quick Analysis of AT&T
I spend substantial time with insurance companies and so I have mastered the fine art of Risk Mitigation. Risk can be defined in many ways, but within the context of the financial community; Risk is defined at the potential for loss of dollars, and the degree of risk is to be defined as to what … Continue reading Let’s Talk About Risk
One phrase I hear repeatedly is: Your house is your biggest investment. This is unequivocally false! Absolutely nothing could be further from the truth. If anything, it is your largest liability. Remember from previous posts; investments pay you. An investment generates you sufficient cash flow with a return on your investment for putting capital at … Continue reading Your House is Your Largest Liability
Mutual funds are all the rage. Any financial institution will rush to offer you a mutual fund. They are billed as the safest investments as they offer superior asset allocation and diversification. It extends even to the government where IRS regulations mandate that 401(k)s must be mutual funds. I'm not convinced that mutual funds are … Continue reading All About Mutual Funds
I want to take a moment to discuss General Electric. This is a bit off topic from my usual discussions and probably a bit more on the complex side (for the usual audience reading this), but General Electric holds a special place in my portfolio since it was the first stock I ever bought. General … Continue reading What Happened to General Electric?
Well; you won't have to imagine; I will show you. Senator William Roth of Delaware is one of your best friends and you probably have no idea who he is. Senator Roth included a piece of legislation in the 1997 Tax Relief Act that fundamentally altered methods of planning for retirement. In my last post … Continue reading Imagine the Power of Roth!