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Newsletter - January 27th, 2024

Dear Reader,


Attached is our latest list of stocks passing value screens (low EV/EBITDA, low P/E, etc.), which don’t meet our investment criteria - and our reasoning.


This may help you avoid some ‘value traps’, and stocks that aren’t sufficiently attractive compared to opportunities available today.


For reports of stocks that pass our quantitative and qualitative standards:

 


 

Templeton: Charlie Rose


Some notes below:



3:00 Invest worldwide


Templeton wanted to help Americans invest worldwide - an idea that's still valid as you can get more bargains and better bargains than in your home country alone.



4:15 Keep changing your ideas


This may be the most challenging advice from Templeton: Be flexible (and opportunistic) as your situation requires and common sense dictates.


Some of your once-cherished rules may require adaptation - though the basic principles of investing (margin of safety, Mr. Market, etc.) are probably timeless.



6:45 Japan Cheapness


Templeton bought when Japanese companies were selling at 1/10th the price of American companies. Buy wherever stocks are selling at the lowest prices in relation to values - and stocks only get cheap because most people don't want them.



7:45 Investing in wartime


Templeton invested after Hitler invaded Poland - famously buying 104 companies selling below $1/share. His thesis was that business activity picks up during a major world war, which played out beautifully in the US.



9:00 How to spot bargains


Look for stocks selling at the lowest price in relation to:


1) Earnings

2) Growth trends

3) Dividends

4) Book value

5) Competitors



21:30 1/3rd Wrong


Templeton says he was wrong 1/3rd of the time; most serious investors can expect to be wrong about half the time. The point is to earn more on your winners than you lose on your losers. If your downside is limited, the alternatives are good.


 

For our stock reports:

 

Wish you an excellent week ahead.

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