August 7, 2009 by Joe Ponzio

On the heels of yesterday’s article, I received an e-mail from a friend this afternoon asking me about my thoughts on inventory turns and profit margins. To paraphrase: The math doesn’t work right, as the inventory turns don’t affect the profit margins each year. I didn’t do a good job…

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January 16, 2009 by Joe Ponzio

When it comes to buying stocks, there are a million different approaches, a million different ways to value companies, a million different charts to look at… You get the idea – it can be dizzying, especially if you are trying to learn how to invest and find some stable ground…

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July 14, 2008 by Joe Ponzio

EDIT: This item is no longer available. Please see the book to learn more about owner earnings and free cash flow. At the end of this post, you’ll find a “Buy Now” button to purchase a 20-page report comparing Free Cash Flow to Warren Buffett’s owner earnings. Though the two…

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June 24, 2008 by Joe Ponzio

Phil Fisher laid out fifteen points to look for in a common stock; three of them are directly related to profit margins. Calculated as net income divided by revenue, the profit margin is a quick way to determine which companies in an industry are most efficient (i) relative to the…

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June 24, 2008 by Joe Ponzio

You’ve heard the clich├ęs: He could sell ice to an Eskimo. She could sell a ketchup popsicle to a woman in white gloves. The sales force is the lifeblood of an organization. After all, the best product in the world is worthless if nobody knows about it. And so, we…

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June 22, 2008 by Joe Ponzio

Today’s research and development (R&D) is tomorrow’s new product or process. The other day we (or more specifically, Phil Fisher) asked, “Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product…

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June 18, 2008 by Joe Ponzio

Businesses generally expand in three ways – increased sales of existing products, sales (and increased sales) of new products, and acquisitions to expand product lines. We looked at “increased sales of existing products” in Can They Increase Sales For Several Years? Fisher then went on to talk about “sales (and…

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June 11, 2008 by Joe Ponzio

In Common Stocks and Uncommon Profits, Phil Fisher outlined fifteen points to look for when analyzing a company for purchase. When valuing a business, our job is to try and predict the future with a degree of accuracy and confidence. If it were as easy as plugging the financials into…

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January 14, 2008 by Joe Ponzio

There is a school of thought that says that the value of a business is entirely in its future cash flows and that all assets are tools that provide that cash flow. In essence, many people believe that assets and equity should be ignored entirely. Let’s look at it from…

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November 19, 2007 by Joe Ponzio

I’m just getting caught up on the slew of comments here and I wanted to jump in again on this string over on What The Heck Is CROIC? There seems to be some confusion as to how free cash flow and GAAP earnings are related and I figured that this…

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