Some Interesting Links

I wanted to post a few links that I found through the people who I follow on Twitter that I found interesting and useful.  I tweet and retweet links that I find of value but I don’t always publish them on my blog, so I figured I would start doing so. Tom Murphy interview from HBS If you have read the book The Outsiders than you are familiar with Tom Murphy and the Capital Cities/ABC history.  In this interview Tom Murphy provides a lot of good information about the history of Capital Cities and the philosophy and strategy that the company used to build a media empire.  Useful information to think about when researching investment opportunities. Why People Buy Perception and Not Reality Thinking about customers’ perception of companies and products is important when analyzing potential investments.  Building a strong brand that establishes a customer’s perception is very important in business and creates a strong competitive advantage. Howard Marks letters from 1990-2009 Street Capital aggregated all the investor letters written by Howard Marks from 1990 through 2009.  Lots of good information contained in these Oaktree Capital letters. Follow me on Twitter for more information  

Read more

The Ultimate Guide to Stock Valuation Review

Jae Jun over at Old School Value has just released a free e-book on stock valuation methods.  The name of the e-book is The Ultimate Guide to Stock Valuation and it covers 8 different techniques to calculate the value of a particular stock.  The e-book is a great supplement to the Stock Analyzer product that is available for sale at Old School Value.  By the way, I’m a user of the Stock Analyzer which I purchased a couple of years ago. 8 Valuation Techniques covered in the e-book: Net Net Working Capital and Net Current Asset Value Balance Sheet/Tangible asset valuation Benjamin Graham Valuation Formula Earnings and Growth stock valuation Discounted Cash Flow (DCF) Cash Flow Valuation Reverse DCF Cash flow Valuation of market expectations Katsenelson Absolute PE Model Fundamentals based multiples EBIT Multiple Valuation Multiples Method Absolute Reproduction Value Balance Sheet Valuation Earnings Power Value (EPV) Adjusted Earnings Valuation Each valuation technique is covered with an explanation of the method, along with constraints of the method.  Each technique has at least one example of how to apply the technique.   The e-book is targeted towards a new or beginner investor that wants to solidify some of the basic methods of…

Read more

Wealth of Data Provided by Aswath Damodaran

I was reading Aswath Damodaran’s blog about the dark side of numbers and began to look at the updated data sets that he provides for free on his data page site.  If you do not know who Aswath Damodaran is, he is a professor of finance at the Stern school of business at NYU.  He teaches classes on Corporate Finance and Valuation, and is pretty well known for his knowledge and studies on valuing businesses.  As I started to dig into the data that is provided on his page, I was amazed. First of all, you can visit his Stern school of business page and review a wealth of information including his lecture notes and examples.  There is so much information available that is hard to provide examples, so I suggest that you visit his site and review everything available.  You are bound to find a lot of interesting and useful stuff. His Data Page site consists of information that he has pulled from various sources (Value Line, Bloomberg and CapitalIQ) and assembled into valuable spreadsheets that are freely downloadable.  Again, there is so much information available that it is hard to quickly cover it all in a blog post,…

Read more

Learn Financial Statement Analysis from KhanAcademy.com

I haven’t been very good a keeping up with posts, but I am going to change that and start to post more regularly during 2013 and beyond. I finally decided to check out KhanAcademy this past weekend.  I have heard quite a bit about the site from various locations, and wanted to try it out.  To my surprise, the site contained a lot of good information about finance and economics.  If you do not know about KhanAcademy, then you can read up more about it on their about page. They have a whole section on Finance and Capital Markets which I found to be introductory, but still informative.  It never hurts to cover the basics, and I always find that I pick up something new when I review material about the basics of concepts.  I found the videos to be very well done and informative. For instance, in the Accounting and Financial Statements subsection, videos cover: Cash vs Accrual Accounting Three Core Financial Statements Depreciation and Amortization In the Stocks and Bonds subsection, videos cover topics such as valuation, Return on Assets, P/E discussion, Enterprise Value and EBITDA.  I have viewed many of the videos, but there are so many that…

Read more

Value Investing Articles to Read – New or Seasoned Investors

Geoff Gannon from Gannon on Investing was recently hired on at GuruFocus.com.  Geoff writes the monthly Buffet/Munger and Net-Net Pick Newsletters.  Since starting at GuruFocus, he was been writing some great articles on value investing by answering a specific email from a reader.  The articles are very good, and cover a range of topics.  I wanted to link to the articles that I think should be read. What Would Value Investing 101 Look Like How to get the Most from an Annual Report What’s a No Growth Business Worth?   Geoff has written a lot of articles, so take a look at his other articles to continue reading.

Read more