This is final post in the search for the best small companies from the 200 listed in Forbes 2008.
You can refer to the previous results here: 1-15 | 16-32 | 33-70 | 71-130 | 131-160
The companies ranked 161-200 has yielded 5 results.
Best Long-Term Dividend Stocks
In his book, Stocks for the Long Run, Wharton Professor Jeremy Siegel proves that stocks have been the best performing investing for the past 200 years in the US. Equities outperformed other assets classes such as gold and fixed income. Typically, stock returns are derived from price appreciation and dividends. Dividend payments have historically accounted for 40% of the average annual stock market return. A lesser known fact is that reinvested dividends have provided for 97% of historical stock market returns.
Investing Book Review: The Art of Short Selling
The Art of Short Selling
There is no mention of technical analysis, trends or volume. The true method of short selling described is based on an extremely detailed fundamental analysis, which is why I immediately purchased the book. The book describes everything that enterprising investors should do.
Dividend Investing Process: Dividends4Life
Every investor has a unique process that they follow when buying and selling stocks. In the past, I have written […]
Free Cash Flow, Capital Expenditures and Tax
I wanted to add some additional points on FCF which I brought up in analysing the Statement of Cash Flows before moving onto the future posts on balance and income statements.
Tax Adjustments
If a company receives a tax deduction when employees exercise their stock options, does this count as cash from operating activities? Or if the company defers its income taxes to a later period, does this count as cash from operations? I don’t think so.
Discounted Cash Flow & Stock Valuation
The purpose of the Discounted Cash Flow (DCF) method is to find the sum of the future cash flow of the business and discount it back to a present value. I use the F Wall Street method of valuing a business along with some tweaks here and there to suit my tastes.
The advantage of this method is that it requires the investor to think about the stock as a business and analyse its cash flow rather than earnings. The first and foremost reason a business exists is to make money where money = cash, not earnings. Since cash is what a business needs in order to maintain and grow its operations, it’s only right to consider the possibility of its future cash growth rather than earnings growth.
How to Master Analyzing the Cash Flow Statement
In this post, I’ll be going over a few basic ideas of what to look for financial statements, not how to read them, for the beginner investor who wants to research or keep up to date with their companies. AeroGrow (AERO) will serve as a very nice example with plenty of warnings signs.
The purpose of this post is to help you get the idea of a company’s health and let you decide whether it is worth the extra effort to take the next step and plug in numbers for ratios and other metrics.
FYI, I exited my position in AeroGrow with a huge 60% loss even though I had the opportunity to lock in a 20% gain. I made many mistakes on this one (let’s just conclude I didn’t even read the statements to begin with) and you will see why I had no other choice than to sell once I woke up. Hopefully, you won’t make the same mistake as me.
Morningstar Vs Old School Fair Value Estimation
Until Nov 21, you have access to all the premium content on Morningstar. Quickly sign up (no credit card required) or log in now! Go go go. Thanks to Contrarian Value Investing for the notice.
I’ve also made a quick comparison between Morningstar fair value and my fair values.
Warren Buffett Stock Picks: Eaton (ETN)
Berkshire’s latest 13-F reveals a new position of 2.9 million shares in Eaton Corp (ETN). This is a small stake when compared to Berkshires other purchases. As George from Fat Pitch Financials mentions, the question remains as to whether this is a Buffett pick or from a subsidiary.
Eaton is a company I had a brief look at in late 2007 when it was trading in the 80’s, I thought I’d take a quick review to see the status of the company today.
Forbes 200 Best Small Companies Project
The October 27,2008 issue of Forbes lists the 200 best small companies of the US. These may be good companies, but I want to know whether they are good investments. So I’ve set up a new challenge.
My goal – go through each company and find the ones worthy of investment.
