September 19, 2007 by Joe Ponzio

Phil Town’s Rule #1 is a hot selling item. Its promise of 15 minutes a week of work, guaranteed profits, and no risk is a lofty goal. Like virtually all popular investing books, Rule #1 has inspired groups of followers on one side-people actually making money with the system-and clusters…

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September 18, 2007 by Joe Ponzio

Let’s get back to the basics-Warren Buffett and his teachings. We know that every company has an intrinsic value. Calculating that value is simple-it is the discounted cash that can be taken out of the business during its remaining life. In fact, that calculation can be used to value everything-businesses,…

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September 17, 2007 by Joe Ponzio

Back on August 4, 2007, I promised Michael that I would look at the Quicken site and revisit Robert Hagstrom’s investment strategies outlined in The Warren Buffett Way. Then, I completely forgot to do so. Sorry Michael-better late than never, right? If you are not familiar with Hagstrom, he is…

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September 14, 2007 by Joe Ponzio

Washington Mutual has The Power of Yes; we have The Power of No-a much greater power that can be used to avoid major mistakes and horrible businesses. When you invest in mutual funds, you forfeit that power and put it into the hands of the mutual fund managers. And what…

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September 13, 2007 by Joe Ponzio

Analyzing companies is fairly straightforward. Finding companies to analyze is a different ballgame. In the U.S. alone, there are more than 10,000 publicly traded companies. With the power of the internet, we can now invest worldwide-bringing the number of available investment options to staggering proportions. Let’s narrow it down a…

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September 11, 2007 by Joe Ponzio

When you buy stock in a company, what do you feel? Anxiety? Excitement? Do you immediately second guess your decision? Or regret it? Let me guess: refresh, refresh, refresh the screen to see if the price has gone up…then check it every chance you get, but no less than daily.

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September 10, 2007 by Joe Ponzio

80 degrees. Sunny. I’m getting a killer tan. And that’s about all I’m getting because the fish aren’t jumping in my boat the way I had hoped. In fact, we’ve caught nothing but two small perch for the day, and nary a nibble more. Some guys are sleeping; some are…

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August 30, 2007 by Joe Ponzio

Perhaps you’ve noticed that I switch between discount rates. Maybe you’ve seen me throw the past out the window and use future owner earnings assumptions that differ from past median growth rates. Or, you may have noticed that I’ll use 8-year timeframes on some companies and 15 year timeframes on…

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August 29, 2007 by Joe Ponzio

I know-Enron is old news. If you don’t remember the scandal, Enron was an energy and commodities trading company that went from massive to bankrupt in just 16 months. Once the largest marketer of natural gas in North America and the United Kingdom and the largest marketer of electricity in…

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August 28, 2007 by Joe Ponzio

How about a round of applause for Wall Street? Once again, they’ve managed to sell the dream, and are failing to deliver. Hedge Funds-unregulated mutual funds-have been the talk of the town for years. That is, of course, until their hyper-aggressive, no-fear strategies hit a market that was…volatile? I’ve said…

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