Here is my letter to my hedge fund investors for 1Q14. My outperformance continued in the first quarter of this year.Read More
A few clients come forward to talk about what New Constructs’ diligence has done for them.Read More
GAAP financial statements fail to meet equity investors’ analytical needs.Read More
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.Read More
Growth without profit (i.e. value) offers no investment merit. Conversely, value without growth offers little upside incentive for investing in any business.Read More
P/Es and other multiples are the results of of value creation/destruction not a determinant.Read More
Per How to Make Money Picking Stocks, our models focus on quantifying the expectations for future cash flows embedded in… Read more >>Read More
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.)Read More
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.Read More
Material changes in the present value of expected… Read more >> cash flows are the key driver of material changes in a stockRead More
The key to successful investing is maximizing upside potential and minimizing downside potential for every investment decision.Read More
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:Read More
If you are interested in learning how to uncover the truth about the profitability and valuation of stocks, the first… Read more >>Read More
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.Read More
Accounting data is NOT reliable for making investment decisions because:Read More
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.