Research Articles
How to Properly Think about Stock Prices in Today’s Volatile Markets
2013-02-08
Price volatility is an unavoidable aspect of investing in common stocks. During periods when emotions are dominating reason, price volatility can become more pronounced than is normal during calmer times. The insidious part of this fact is that the more volatile stock prices are, the more fear and stress they generate, which only feeds even […]
Stocks 2014: Investing for Growth – The Power and Protection of High Compounding Earnings Growth – Part 2
2013-01-16
As I become more mature (translate: gotten older), my investment philosophy has slowly evolved into a more conservative posture. When I was a younger investor I felt I had time on my side, and therefore, was willing to take on greater risk as long as I believed that greater rewards could follow. In other words, […]
The Shiller PE Continues to Mislead Investors, The S&P 500 Is Fairly Valued in Early 2013
2013-01-15
Allow me to start this article by emphatically stating that I have a real problem with forecasting stock markets in the general sense. Instead, I prefer to forecast the intrinsic values of individual businesses based on their earnings justified fundamental values. I hold this position because I believe that it is not only possible, but […]
Amgen’s Dividend Policy Has Ignited Their Stock
2013-01-11
Founded in 1980, Amgen (AMGN) is the world’s largest biotechnology company with a current market cap of just under $68 billion. However, in spite of its already large size, we believe that Amgen has ample room to continue growing their earnings at above-average rates into the foreseeable future. Our optimism for future growth is predicated […]
The Best Use of Corporate Profit (cash)
2012-12-11
Introduction I have recently authored two articles showing that, all other things being equal, a stock that pays its shareholders a dividend generates a higher total return than a stock with similar growth characteristics that doesn’t. This is based on the reality that stock prices follow earnings in the long run, and it is this […]
The Unbridled Truth About Dividends Contribution to Shareholder Profitability
2012-11-27
The Two Components of Total Return There have been many recent published articles and discussions that indicate that dividends have become the Rodney Dangerfield of the investing world. In short, dividends get no respect, as many believe that dividends do not add to a shareholder’s profitability. We believe that dividends represent a return bonus. This […]