October 29, 2007 by Joe Ponzio

We all know that the markets are driven by fear and greed. We know that, on a daily basis, we are bombarded with information and news about stocks and the markets. As investors and casual internet surfers, we are flooded with information and advertisements about “The Ten Best Stocks For…

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October 22, 2007 by Joe Ponzio

Thanks all for the well wishes. Everyone is doing great! Now, back to business as usual (with a hint of less sleep). In 1939, Sir John Templeton borrowed money to buy stock in 104 companies selling under $1, 34 of which were in bankruptcy. In time, four of those stocks…

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October 11, 2007 by Joe Ponzio

By now we’ve all (should have) been to the Berkshire Hathaway site to read the various annual reports and letters to shareholders, and we all (should) have the Owner’s Manual memorized. When Warren Buffett writes something, we should listen. After all, the tone of his writings have gone from serious…

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October 4, 2007 by Joe Ponzio

Some 50 years ago, John Larry Kelly came up with a formula to determine how much you should bet on a gamble or investment to optimize your bankroll. Now known as the Kelly Formula, the equation determines the optimal percentage of your cash to bet on a favorable bet. Mohnish…

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September 27, 2007 by Joe Ponzio

When buying a business, you are essentially becoming a silent partner in that business. Sure, you have a say in the meetings and you get the annual reports; still, you don’t have any real control over the day-to-day operations or the allocation of the company’s (your) cash. When a company…

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September 20, 2007 by Joe Ponzio

The decision to buy stock in a company is fairly straightforward. Is it a great business? Is it trading at a significant margin of safety (MOS)? Am I confident in my valuation and assessment? Answer “yes” to those questions and you’re on your way to business ownership. But when do…

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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 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 23, 2007 by Joe Ponzio

We’re in a tough spot-financial services companies, particularly banks, are getting hammered right now because of the sub-prime mess. When a stock gets hammered, the underlying company may become very attractive at the new price. Unfortunately, Morningstar doesn’t give us the free cash flow data for these companies, so we…

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