Research Articles
Microsoft: The Progression Of A Maturing Business
2014-05-14
Everyone is well aware of Microsoft’s storied historical growth record, which provides a classic case to watch a company progress into the maturation phase. As a result of this slower growth, one might be inclined to believe that an investment thesis today is “late to the party.” While it is true that the dynamics and […]
Stocks for 2014: Are Dividend Paying Cyclical Stocks Acceptable Investments For Retirement Portfolios? – Part 6
2014-02-25
Introduction Chuck Carnevale This is final installment of a 6-part series of articles on stocks for 2014. In the previous five installments – Part 1, Part 2, Part 3, Part 4 and Part 5, my focus was primarily on stocks of various categories that I believed were fairly valued even after the strong run that […]
How I Explain Amazon’s Stock Performance
2013-11-04
Introduction Amazon (AMZN) is a stock that seems to defy conventional wisdom about how a stock is, or should be, valued. Fundamental investors, like yours truly, recognize and respect the importance of the earnings and price relationship. Moreover, I will be so bold as to emphatically state that in the long run profitability (earnings) will […]
Trying To Beat The Market Is A Fool’s Errand
2013-10-17
Introduction Proponents of indexing as the best investment strategy seemed to take great delight in reporting how the vast majority of professionally managed portfolios (mutual funds, separately managed accounts, hedge funds, ETFs, etc.) fail to outperform the S&P 500. Therefore, they argue, it is best not to even try. Investors should simply invest in index […]
What Is Due Diligence? Here’s How I Do It
2013-10-08
Introduction The lexicon of the financial world is full of phrases and jargon that are often tossed about without considering that there may be those who are not exactly familiar with the true meaning of the terms. It recently came to my attention that due diligence may be one of those idioms. In my own […]
What Is The Correct Discount Rate To Use? Part 2B
2013-09-26
Introduction One of the most widely-accepted and utilized methods of valuing a business in today’s world of modern finance is discounted cash flow (DCF) analysis. Obviously, in order to calculate valuation, practitioners must rely on mathematical formulas. However, the challenge with utilizing mathematical formulas to determine the net present value (NPV) of a future stream […]