Financial on Companionway

Opening Remarks

Fri, 11 Jul 2014 10:54:24 +0200

These pages are a collection of posts related to financial issues. I consider myself a conservative value investor who appreciates one technical analysis tool; a return to the mean. I guess that makes me a bit of a contrarian investor.

I only trade on a limited number of stocks which have large “moats”. These stocks have typically proven themselves to be leaders of the pack and longstanding. They typically provide regular dividends, are large cap, have a record of good management, a P/E of less than 15 and a forward P/E that is better than the trailing P/E, decent ROI, decent cash flow, and a sloid Monringstar rating.

I also sell covered options that is, cash covered puts (frequently) and stock secured calls (less frequently). My options typically have 20-40 days out to expiration. I try to get what I call an ideal return which is 12% (APR) on each trade.

Feedback is welome as usual.

Are we in a bubble or is that $$ in your eyes

Fri, 29 Aug 2025 00:00:00 +0000

Let’s start with I have been here before and I was wrong. I am here now and I still may be wrong. Looking over some of the most significant market value ratios the expected conclusion is “yes”, the market is overvalued. This site crystalbull is worth peeking at every so often. There is a lot of data measurements there which is overwhelming. SO I will jump to other statistics that I can male more sense of.

The Race is Not Always to the Swift

Tue, 12 Nov 2024 19:55:24 +0200

The Hare & the Tortoise A Hare was making fun of the Tortoise one day for being so slow. “Do you ever get anywhere?” he asked with a mocking laugh. “Yes,” replied the Tortoise, “and I get there sooner than you think. I’ll run you a race and prove it.” The Hare was much amused at the idea of running a race with the Tortoise, but for the fun of the thing he agreed.

Mar 12, 2023

Sun, 12 Mar 2023 08:35:00 +0000

First my warning. The best advice I can give is don’t take my advice. Second is, I am wrong more often than I am right. (However, Soros once said, if I am right one ought of three times I am happy) I don’t often write my opinions regarding financial matters but right now things are getting interesting. We have had the second largest bank failure announced this last Friday (SVB Silicon Valley Bank).

Let Warren Buffett be Your Guide

Fri, 11 Jul 2014 10:54:24 +0200

You’ve heard Warren Buffett say:

Rule No. 1: Never lose money.

Rule No. 2: Don’t forget rule No. 1."

Minimize Risk

Fri, 11 Jul 2014 10:54:24 +0200

I am a value investor so that means: …much of this info is also in Let Buffett be you Guide

I try to keep every investment less than 5% of your portfolio and spread across sectors.
- Stock selections should be across a spectrum of sectors to maintain diversification. This is a challenge for me as one other consideration is to only buy what you know… and what I know is limited.
- This means you will have a 20+ universe of stocks. It can be a challenge tracking more than say 30+ stocks.
I look for large cap stocks with a “moat” around them - competetive advantage
find one with a P/E of less than 15 (which is the market average over time) and I look for a forward P/E that is lower than the current P/E - suggests improving earnings.
I buy stocks with a dividend - these are generally stocks that have been around for a while and I want one I expect to be around 10 years from now. I prefer a dividend yield over 1.50.
It should be a market leader - again look at the market cap compared to others in the same sector.
Return on Equite (ROE) of over 10%/yr.
Is this stock “suitable”? Is it in my risk tolerance boundries and am I confortable with management, product, location etc
Speaking of management - I look for companies I trust - this is a challenge and it is important