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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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 27, 2007 by Joe Ponzio

The two most important factors that go into buying companies are moat and margin of safety. You could, and likely will, be wrong on your future owner earning projections. You may be overly optimistic or overly cautious and end up buying too soon or passing on a great opportunity. Your…

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August 16, 2007 by Joe Ponzio

I’ve been asked a number of times to analyze Wal-Mart. My goal here is not to offer stock tips; rather, I want you to be able to do it yourself. Still, I looked at (and bought) Wal-Mart for myself, so here it is: To preface, investors that comb Morningstar to…

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August 13, 2007 by Joe Ponzio

Take one of my old spreadsheets (found elsewhere on this site), plug in BNI’s past performance, and you’ll get a per share value of $60.15. Mike and I both did it, and we were both perplexed. Did Buffett pay upwards of a 30% premium for BNI? Let’s pick it apart.

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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 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 13, 2007 by Joe Ponzio

You can’t argue Warren Buffett’s past. The man is an investing genius and has made millions upon millions of dollars for his investors over his 50+ year investing career. As he continues to discuss his retirement, make plans to pass on his fortune, and search for a replacement, one must…

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July 12, 2007 by Joe Ponzio

Okay. I gave you Johnson & Johnson. I analyzed the less-than-stellar 0.89% average annual return Coca-Cola has provided investors from 1996 to 2006. I’ve even talked about how easy investing should be if we follow Warren Buffett’s lessons. Still, you have asked for something more exciting-a smaller company offering the…

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