July 27, 2007 by Joe Ponzio

I like to think that I’m doing some good here on the blog. Your emails, comments, and return visits have led me to believe that. That said, I don’t think that I am a “guru” and that everyone else is wrong. My point on this site is simple: you can…

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July 26, 2007 by Joe Ponzio

$6.22 billion. That’s what Wall Street is pricing Amylin Pharmaceuticals (AMLN) at these days. If you are a fan of Efficient Market Theory (Buffett isn’t), then you believe that the company is worth that much. You’d also have to believe that the company was fairly valued at $5 back in…

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July 25, 2007 by Joe Ponzio

Buy stocks as if you were buying the entire business. That has been a cornerstone of Warren Buffett’s investment philosophy for more than fifty years. Sure, he’s traded stocks and engaged in arbitrage. Still, his largest long-term gains have come from owning wonderful businesses, regardless of whether or not the…

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July 24, 2007 by Joe Ponzio

By now, you have determined what your desired rate of return is. Personally, I like to use 15%. At that rate, my money will double approximately every 5 years. Why 15%? Considering that I have to find the companies, analyze them, say “no” to most of them, and patiently wait…

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July 23, 2007 by Joe Ponzio

In Part I, we looked at Shareholder Equity as the first step in calculating the intrinsic value of a company. Then, we looked at Buffett’s owner earnings and further explored intrinsic value in Part II. When you buy stock, you are buying a piece of a business-usually, a small piece.…

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July 21, 2007 by Joe Ponzio

Barring any major happenings that require a post, this will be my last weekend message. I will no longer post a “Random Thought Saturday”, opting instead to post a Random Thought “Whenever”. F Wall Street has more than exceeded my expectations, and I have to scale back a bit.

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July 20, 2007 by Joe Ponzio

In Part I, we looked at Shareholder Equity as the first step in calculating the value of a company. Shareholder Equity essentially tells us how much our company is worth if it shut down operations, sold off its assets, paid its debts, and distributed the cash to the shareholders. Though…

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July 19, 2007 by Joe Ponzio

The Greater Fool Theory is a belief that you can buy a stock at any price and sell it to some other, bigger fool for a profit. In times of ever-increasing markets, this theory often shows itself to be true. Still, reality must come crashing down at some point. It…

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July 18, 2007 by Joe Ponzio

Throughout 1988 and 1989, Warren Buffett acquired more than $1 billion of Coca-Cola (KO) stock. At the time, Wall Street thought he was downright crazy. After all, Wall Street scrutinized the purchase and deduced that Buffett has paid way too much for earnings and the stock price was high-having run…

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July 17, 2007 by Joe Ponzio

Perhaps one of the most important, and least used, numbers on Wall Street is CROIC-Cash Return On Invested Capital. A Google search for “earnings in investing” brings up some 7 million results. “CROIC in investing” brings up 47, of which 5 belong to F Wall Street (probably six after this…

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