Sep 16, 20232 min read

Newsletter - September 16th, 2023

Dear Reader,

Attached is the latest list of stocks generated from basic value screens (low p/e, ev/ebitda, debt/equity, etc.), which don’t meet our investment criteria - and our reasoning.

This may help you avoid a few ‘value traps’ or stocks that aren’t sufficiently attractive compared to opportunities available today.

For reports of stock ideas that pass our quantitative and qualitative standards:

Join Here

Steven Romick - Part II

Wealthtrack - Steven Romick (Part II)

The interview is packed with insight - We covered Part I few weeks ago, notes on part II below:

2:00 What can go wrong?

Look at downside risk from a competitive angle - what are the competitive threats that could destroy the business?

5:30 Look forward a few years

Not just low multiples of earnings and book value - but make an effort to look out a few years - what's the business going to look like in five years? How might the business be disrupted?

The value of the business can offer great protection with respect to a margin of safety (beyond the current figures).

10:15 Loss aversion

Value investing suits those naturally inclined to avoid losses - not quotational loss but permanent impairment of investment value.

11:30 Look across the capital structure

Search across the capital structure - debt, preferreds, equity, etc. for value. The essence of the analysis is the same - common stock analysis, as we practice it, is an extension of bond analysis.

14:15 - Dislocation of better businesses

Look for better quality businesses that are dislocated in some way for good opportunities.

14:45 Determine the strategy that works for you and stick to it

We seek a clear and convincing margin of safety on the basis of earning power and/or balance sheet value. This involves extensive stress tests on multiple aspects of the financial statements.

In addition, we look out for qualitative indications contrary to the past record i.e. a sense check based on study of the footnotes.

If you're looking for such stocks, our service may be an appropriate fit for you.

16:00 Don't run with the crowd

Sit back and evaluate what makes sense for your portfolio. Investing is arbitrage between market perception and reality.

21:30 Grayscale

Nothing is permanent, businesses are vulnerable. Investing involves an intelligent assessment of probabilities and betting when the odds are in your favor.

Wish you peace until next time.

Newsletter - September 16th, 2023

Dear Reader,

Attached is the latest list of stocks generated from basic value screens (low p/e, ev/ebitda, debt/equity, etc.), which don’t meet our investment criteria - and our reasoning.

This may help you avoid a few ‘value traps’ or stocks that aren’t sufficiently attractive compared to opportunities available today.

For reports of stock ideas that pass our quantitative and qualitative standards:

Steven Romick - Part II

Wealthtrack - Steven Romick (Part II)

The interview is packed with insight - We covered Part I few weeks ago, notes on part II below:

2:00 What can go wrong?

Look at downside risk from a competitive angle - what are the competitive threats that could destroy the business?

5:30 Look forward a few years

Not just low multiples of earnings and book value - but make an effort to look out a few years - what's the business going to look like in five years? How might the business be disrupted?

The value of the business can offer great protection with respect to a margin of safety (beyond the current figures).

10:15 Loss aversion

Value investing suits those naturally inclined to avoid losses - not quotational loss but permanent impairment of investment value.

11:30 Look across the capital structure

Search across the capital structure - debt, preferreds, equity, etc. for value. The essence of the analysis is the same - common stock analysis, as we practice it, is an extension of bond analysis.

14:15 - Dislocation of better businesses

Look for better quality businesses that are dislocated in some way for good opportunities.

14:45 Determine the strategy that works for you and stick to it

We seek a clear and convincing margin of safety on the basis of earning power and/or balance sheet value. This involves extensive stress tests on multiple aspects of the financial statements.

In addition, we look out for qualitative indications contrary to the past record i.e. a sense check based on study of the footnotes.

If you're looking for such stocks, our service may be an appropriate fit for you.

16:00 Don't run with the crowd

Sit back and evaluate what makes sense for your portfolio. Investing is arbitrage between market perception and reality.

21:30 Grayscale

Nothing is permanent, businesses are vulnerable. Investing involves an intelligent assessment of probabilities and betting when the odds are in your favor.

Wish you peace until next time.

Subscribe to Our Newsletter