Jul 272 min read

Newsletter - July 27th, 2024

Dear Reader,

Attached is a recent list of stocks that passed value screens (e.g. below net current asset value, below tangible equity, etc.) but 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:

Join Here

Ken Langone: Home Depot and Eli Lilly

Something a little different this week - an enormously successful business operator, and a fighter. Ken Langone is one of the founders of Home Depot and a major shareholder of Eli Lilly:

1:45 Loyalty and Patience

In investing and business (as in life), loyalty and patience pays big dividends.

2:30 Average holding period

42 years.

Know the management very well. Langone believes the key to any "great" investment are the people involved.

4:30 Dividends

Langone likes his dividends, as we do - in addition to management conservatism and strong balance sheets.

5:45 Management Quality

Look for management honesty first and foremost - along with wisdom, and "breadth of thinking" (provincially or globally).

8:45 Judgment of People

Watch how people treat those beneath them in the social hierarchy - you can learn a lot about them. Take them to a restaurant and watch how they treat waiters.

11:30 Customer satisfaction

Business is all about satisfying customers. Langone's focus on customer-facing employees resulted in 27%/year compounded returns in Home Depot stock over 43 years.

13:30 Buy a share of stock

There's never been a system like capitalism in producing an abundance of goods and services. Though this can result in gross inequality, any person who earns a living can buy a share of stock, become an owner, and enjoy capitalism's bounties.

21:30 Fighting the Government

Langone was one of the few who fought the New York Attorney General instead of settling - and won. Because he knew he was right.

One piece of advice: keep strong records of important meetings (24:45).

For reports on the best investment values in stocks worldwide:

Join Here

Wish you an excellent week ahead.

Newsletter - July 27th, 2024

Dear Reader,

Attached is a recent list of stocks that passed value screens (e.g. below net current asset value, below tangible equity, etc.) but 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:

Ken Langone: Home Depot and Eli Lilly

Something a little different this week - an enormously successful business operator, and a fighter. Ken Langone is one of the founders of Home Depot and a major shareholder of Eli Lilly:

1:45 Loyalty and Patience

In investing and business (as in life), loyalty and patience pays big dividends.

2:30 Average holding period

42 years.

Know the management very well. Langone believes the key to any "great" investment are the people involved.

4:30 Dividends

Langone likes his dividends, as we do - in addition to management conservatism and strong balance sheets.

5:45 Management Quality

Look for management honesty first and foremost - along with wisdom, and "breadth of thinking" (provincially or globally).

8:45 Judgment of People

Watch how people treat those beneath them in the social hierarchy - you can learn a lot about them. Take them to a restaurant and watch how they treat waiters.

11:30 Customer satisfaction

Business is all about satisfying customers. Langone's focus on customer-facing employees resulted in 27%/year compounded returns in Home Depot stock over 43 years.

13:30 Buy a share of stock

There's never been a system like capitalism in producing an abundance of goods and services. Though this can result in gross inequality, any person who earns a living can buy a share of stock, become an owner, and enjoy capitalism's bounties.

21:30 Fighting the Government

Langone was one of the few who fought the New York Attorney General instead of settling - and won. Because he knew he was right.

One piece of advice: keep strong records of important meetings (24:45).

For reports on the best investment values in stocks worldwide:

Wish you an excellent week ahead.

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