value investing – raybonneau.com

January 18, 2016 General Post a Comment

Is a Brand a successful Moat or Barrier to Entry?

I’ve decided in the past, that a company’s brand was a strong enough moat to keep competitors at bay, and allow the company to keep earning profits This has been a grave error, and warrants further study. I’ve since learned that a brand, by itself, is not a strong competitive advantage resulting in a defensible economic moat. For a strong moat a stronger situation needs to be in place such as some kind of customer preference, distribution or network effect that is the source of a strong competitive advantage. Companies spend a lot of money on marketing and advertising to build...

January 6, 2015 Value Investing Post a Comment

Company Turnarounds are Hard

Our conclusion is that, with few exceptions, when a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact – Warren Buffett Turnarounds seldom turn. – Warren Buffett I’ll admit that I am interested in finding companies that are in a turnaround. I feel that if I can locate a company that will be successful, it will result in a high return on my investment. However, if you are experienced in the markets, or have worked for a company that is in...

December 16, 2014 Value Investing Post a Comment

100x The Power of Growth in Wealth Creation

Thanks to Ian Cassel from MicroCapClub for tweeting out a link to a paper produced by Motilal Oswal which is a study on companies that have gone on to become 100 baggers within that past 5 years. A 100 bagger is a company whose share prices as increased 100 times the initial price, or in other words, the company has experienced tremendous growth that has translated into tremendous share price gains. A really great paper analyzing 100-baggers H/T @Anil_Tulsiram http://t.co/Qcoj5cq7Rx Wish someone would do this here in the US #investing — MicroCapClub (@iancassel) December 16, 2014 100x The...

February 7, 2014 Value Investing Post a Comment

Critical Change within Value Investing?

Last month Barron’s published an article by Brendan Conway named Value Investing goes Back to the Future. In the piece, Conway goes on to try to establish the premise that value investors have changed from using historical prices or backward-looking measures to more risky forward earnings or forward-looking measures. What exactly is value investing? Value investors buy attractively priced stocks, but there are backward-looking measures, as well as forward-looking ones. Lately, the forward measures are winning, and that fact tells an interesting story about what’s driving investors. When value investors start to use forward-looking measures, I immediately begin to...

January 11, 2013 Value Investing Post a Comment

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...

March 11, 2012 Value Investing Post a Comment

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...

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