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POP Quiz: Is a Rising ROE Good?
I intend to live forever. So far, so good–Steven Wright — We will tackle Chapter 4 in Deep Value next week and I will find out the status of the forum for advanced students this weekend. I am swamped....
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Screening out Earnings Manipulators; Quality of Earnings
Accounting shenanigans have a way of snowballing: Once a company moves earnings from one period to another, operating shortfalls that occur thereafter require to engage in further accounting maneuvers...
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Measuring Financial Distress Chapter 4 of Quantitative Value
The corpse is supposed to file the death certificate. Under this “honor system” of mortality, the corpse sometimes gives itself the benefit of the doubt. -Warren Buffett, “Shareholder Letter,” 1984...
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Don’t Spare the Rod: Critique of Investment Research Reports
A beginning analyst sent me a research report to discuss: Ensco PLC Write-Up Now before I start, realize that when I was beginning, my idea of a research report was to mimic Cramer. Buy because the...
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A Money Problem
We Don’t Have a Wage Problem; We Have a Money Problem FYI: GAAP Acccounting gatech_finlab_lifo_42216
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The END of Accounting?
The End of Accounting An article from the Wall Street Journal. Some may wish to read this book. On the other hand, we all should know the limitations of accounting. Accounting was designed for...
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Hedge Fund Analyst Quiz
You just joined as a new analyst and your boss slaps this on your desk Adobe 2000 10K. What is the real net income to shareholders? Assume a 35% tax bracket. You remember from reading in Berkshire...
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A Reader’s Question on DCF
QUESTION: So the intrinsic value of a company is the present value of all future cash flows? Now everyone has a different required rate of return or discount rate, so does that mean one...
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Is Book Value as Relevant as it used to be? (Part 1)
What Worked in Investing-Tweedy Browne WhatHasWorkedFundOct14Web Low price to book value or high book value to price was an INDICATOR of value but no guarantee to coincide with intrinsic value as...
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100 to 1; Sales; Hedge Fund Pop Quiz
From Best to Worst. There are typically two ways to make 100 to 1 on your money. 1. The preferred way–in my view because the company has more control of its destiny–would be to invest early in a...
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