„The stock market is a giant distraction to the business of investing.“
Investing in Stocks
You might think that you’ve identified some extremely undervalued companies,
but don’t expect that right after you buy them, that everybody agrees with that.
If there is a company that everybody feels is very, very attractive, it probably isn’t.
In the words of Ben Graham [Author of The Intelligent Investor],
“In the short run, the stock market is a voting machine. In the long run, it is a weighing machine.”
If I come across a company I like and the price is right, a full analysis and valuation report is provided.
My quant selection screening and filtering method is simple and the same with every stock I look at.
Just by doing this, I can decide whether to continue investigating or move on to the next stock.
I want to focus on "QARP"-stocks with a healthy "MOS" and wide "MOAT".
QARP = Quality at a reasonable price (Value)
MOS = Margin of Safety (discount to intrinsic value)
MOAT = Characteristics that act as barriers to entry (sustainable competitive adv./pricing power)
„It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. (Warren Buffett)
History has shown that the bulk of the stock market's returns are delivered
by dividends. Only consistently profitable companies can afford to keep
paying dividends, so profitability is of critical importance. And investors
shouldn't pay too expensive a price to buy a stock, even if the company itself
is strong. So therefore, dividend investors should be most interested
in researching the strongest most profitable companies, that also happen to
be trading at an attractive valuation.
Each month, we screen through our coverage universe of
dividend paying stocks, to look at a variety of data — dividend history &
yield, book value, quarterly earnings — and compare it to the stock's trading
data to come up with certain calculations about profitability and about
the stock's valuation (whether we think it looks ''cheap'' or ''expensive'').
Our proprietary Dividend/Valuation Rank formula ranks stocks within
sectors/categories, to identify the top most ''interesting'' ideas that
merit further research.
27.6.2013 (avg. dividend yield 3.8%)
Part 2: Buybacks juice executive pay
Graphic: Lots of companies are buying lots of their shares.
Graphic: Buybacks, dividends climb past net income.
High Dividend Yield Stock Filter
Dividend Stock Screener
General Stock Screener
Follow these steps to access the Standard & Poor's earnings spreadsheet:
2. Click the "ADDITIONAL INFO" button in the left column.
3. Click the Index Earnings link to download the Excel file. Once you've downloaded the spreadsheet, scroll down to the "As Reported Earnings" data in column L.
Background on the S&P Composite
The composite index is just that, a composition that splices the S&P 500, which started in March 1957, with historical data that included the companies in the S&P 90, founded in 1926, the S&P 233 weekly index dating from 1923, and earlier market data painstakingly gathered by Alfred Cowles. Cowles used family money to found the Cowles Foundation and was responsible for collecting comprehensive US stock data from 1871 to 1930. His magnum opus, the 2nd edition of his Common Stock Index was published in 1939 and is now available online in PDF format.
The S&P Composite has been popularized by Yale Professor Robert Shiller, and an Excel copy of the data, updated monthly, is maintained at his Yale website.
“In business, I look for economic castles protected by unbreachable moats.”