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Get Our Free Ebook: “Three Keys To Avoiding the Next Stock Market Crash”

Wednesday, August 6th, 2014 Screen Shot 2014-08-06 at 9.41.56 AM

Concerned about a coming market correction? Learn how to protect your portfolio with these 3 tips.

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Putting My Money Where My Mouth Is

Tuesday, May 6th, 2014 index$sign

Here is my letter to my hedge fund investors for 1Q14. My outperformance continued in the first quarter of this year.

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New Constructs Client Testimonials

Monday, March 3rd, 2014 charles-wilton-cut-resized-600

A few clients come forward to talk about what New Constructs’ diligence has done for them.

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GAAP Opinion versus Economic Fact

Thursday, September 19th, 2013 GAAP Opinion versus Economic Fact

GAAP financial statements fail to meet equity investors’ analytical needs.

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The Disconnect between Investment Theory and Practice

Thursday, September 19th, 2013 The Disconnect between Investment Theory and Practice

A disconnect between investment theory and investment practice exists and is manifested in the way investors should value stocks versus the way they actually do value stocks.

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Distinctions Between “Growth” and “Value” Investment Styles Are Irrelevant

Thursday, September 19th, 2013 Distinctions Between “Growth” and “Value” Investment Styles Are Irrelevant

Growth without profit (i.e. value) offers no investment merit. Conversely, value without growth offers little upside incentive for investing in any business.

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Price-to-Earnings and Other Multiples Are Not Determinants Of Price

Thursday, September 19th, 2013 Price-to-Earnings and Other Multiples Are Not Determinants Of Price

P/Es and other multiples are the results of of value creation/destruction not a determinant.

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How New Constructs’ Discounted Cash Flow Model Works

Wednesday, August 7th, 2013 fig5Dcf3

Per How to Make Money Picking Stocks, our models focus on quantifying the expectations for future cash flows embedded in… Read more >>

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Economic Versus Accounting Earnings

Thursday, August 5th, 2010 dreamstimefree_966040_thornBranch

Accounting data was not designed for equity investors, but for debt investors. “Earnings, earnings per share and earnings growth are misleading measures of corporate performance.”(from page 66 in The Quest For Value by Bennett Stewart, Harper Collins 1991.)

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Investing vs Speculating

Monday, June 7th, 2010 Investing vs Speculating

The difference between Investing and Speculating is much larger than Wall Street would have you believe. In fact, they could not be too more different activities. Speculating is gambling. Investing is intelligent decision-making.

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How to make money picking stocks

Wednesday, May 19th, 2010 How to make money picking stocks

Material changes in the present value of expected… Read more >> cash flows are the key driver of material changes in a stock

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Investment Strategy 101

Wednesday, May 19th, 2010 FatTailsValuation

The key to successful investing is maximizing upside potential and minimizing downside potential for every investment decision.

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Valuation 101

Wednesday, May 19th, 2010 Valuation 101

There is only one true way to value stocks (or any financial assets) – as has been stated by the top investing minds over the ages:

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Do It Yourself Guide To Finance

Thursday, May 13th, 2010 Do It Yourself Guide To Finance

If you are interested in learning how to uncover the truth about the profitability and valuation of stocks, the first… Read more >>

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Finance 101

Thursday, May 13th, 2010 Finance 101

Finance is the process for making accounting data useful.

Per Accounting 101: accounting data by itself is not useful. Think of accounting data as the words used in the language of Finance. Just as with any language, words can be arranged to convey almost any meaning.

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Accounting 101

Thursday, May 13th, 2010 Accounting 101

Accounting data is NOT reliable for making investment decisions because:

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Why I Created This Blog

Friday, April 2nd, 2010 Why I Created This Blog

This blog will show how to:

1. Uncover the unadulterated facts about corporate profitability and valuation.
2. Avoid falling prey to misinformation about stocks that inundates the airwaves, papers and most research channels.
3. Develop intelligent investment strategies.

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