The idea behind this was to see if I could come up with a screen that included the characteristics of a great company and backtested well. So what are these characteristics? High returns on capital. High margins. Consistently generate free cash flow. Not too much debt. Stable revenues with either growth or at worse small declines (yes even the best companies … [Read more...]
Cyprus Value Investor Event Idea: Graftech
We just got done with the annual Value Investor Conference in Cyprus. You can see scenes from the event in this video. The event which this year had a 40 person cap was fully booked and participants enjoyed 25 presentations over the 2 days, as well as numerous activities including a private beer tasting, tour of the museum and a magic show. 22 investment ideas were … [Read more...]
Long Western Digital (WDC)
Yes, you own a Western Digital product. For sure! The company generated $20.6 billion in sales of hard drives and solid-state drives (SSDs), as well as NAND based products. So essentially their storage products go into notebooks, desktops, mobile phones and data centers. There is fear in the market that prices are coming down and that demand for hard drives will weaken. … [Read more...]
Top 50 Magic Formula Stocks
One very popular screen is Joel Greenblatt’s ‘Magic Formula’ which he talks about in his best selling book “The Little Book that Beats the Market”. This screen is a ranking system using ‘return on capital’ and ‘earnings yield’. Using Greenblatt’s definitions I re-created the screen. For specifics regarding the calculations please scroll to the bottom of the post. The 50 top … [Read more...]
Growing Global Dividend Aristocrats
Investors love dividends. Especially when they are growing, sustainable and consistent. I screened over 70,000 stocks to find which ones had the following characteristics: Paid a dividend every year for the last 10 years. The dividend grew in each of the last 5 years. The dividend payout ratio was less than 100%. This means that the company is paying a dividend … [Read more...]
