August 18, 20232Comments

The Best Stocks from our Rebuild and Renew Thesis

Focus on conducting the best possible fundamental analysis on the things we can control. We hope you’ll join us on this journey.

by Italo Mendonca

April 3, 20170Comments

Diligence Will Matter More Than Ever In 2017

Uncertainty defined 2016. In the midst of all the uncertainty, investors grew more and more aware of the need for real diligence. Market conditions, changing investor behavior, and new technologies all come together to make diligent research matter more than ever.

by Sam McBride

March 27, 20170Comments

Filing Season Finds: Week Of March 20–24

Last week, our analysts parsed 127 10-K filings and collected 16,552 data points. In total, they made 2,964 forensic accounting adjustments with a dollar value of $1.7 trillion.

by Kyle Guske II, Senior Investment Analyst, MBA

February 23, 20170Comments

“Fiduciary Duty Can’t Be Killed” – WealthManagement Op/Ed

On Wednesday (2/22/17), WealthManagement.com featured our op/ed on why the fiduciary rule can’t be killed and how efforts to stop the rule may only make it stronger.

by Kyle Guske II, Senior Investment Analyst, MBA

January 23, 20170Comments

Michael Kitces Features Our “Guidelines for Due Diligence”

Michael Kitces (@MichaelKitces), leading voice in the financial advisory industry, recently featured our MarketWatch op/ed in his recommended weekend reading and in a tweet.

by Kyle Guske II, Senior Investment Analyst, MBA

December 5, 20160Comments

Danger Zone: Advisers Who Don’t Fulfill Fiduciary Duties

Clients are more educated than ever. There is more transparency into advisory practices than ever. It’s going to be awfully hard for advisors to win new business if they cannot tell clients they will act in the clients’ best interests.

by Kyle Guske II, Senior Investment Analyst, MBA

July 1, 20130Comments

Footnotes Adjustments for Earnings & Valuation Diligence

This article details the uniquely rigorous diligence behind each of our ratings on 3000 stocks, 7000 mutual funds and 400 ETFs. It contains reports on all the adjustments we make to convert GAAP data to economic earnings and derive true shareholder value in a discounted cash flow model.

by David Trainer, Founder & CEO

June 28, 20131Comments

Employee Stock Option Costs and Goodwill Amortization – NOPAT Adjustment

Converting GAAP data into economic earnings should be part of every investor’s diligence process. Performing detailed analysis of footnotes and the MD&A is part of fulfilling fiduciary responsibilities.

by David Trainer, Founder & CEO

June 12, 20132Comments

Non-Operating Expenses Hidden in Operating Earnings – NOPAT Adjustment

Non-operating expenses are unusual charges that don’t appear on the income statement because they are bundled in other line items. Without careful footnotes research, investors would never know that these non-recurring expenses distort GAAP numbers by lowering operating earnings.

by David Trainer, Founder & CEO

May 31, 20130Comments

“Index” Label Myths

The word “index” in an ETF label does not always mean that investors are getting the specific exposure they seek. Diligence on ETF holdings is necessary despite what the providers might have you believe. Below I dispel the following myths concerning index ETFs.

by David Trainer, Founder & CEO

May 16, 20130Comments

Footnotes Diligence Drives CSCO Pick

If you bought Cisco Systems Inc (CSCO) last August when I recommended it to investors, or when I recommended it again in January, or any time between May 10, 2012 and now when the stock has had my Very Attractive rating, then today has been a good day for you.

by David Trainer, Founder & CEO