Brazil Fast Food Update: After Huge Run Up The Company Is Still Undervalued

Brazil Fast Food Update: After Huge Run Up The Company Is Still Undervalued is my first new article posted in months and can be viewed over on Seeking Alpha.  The article is a Seeking Alpha Pro article but will remain free for everyone to look at for the next few weeks.  In the article I revalue BOBS, analyze its float since I was not doing that when I wrote the original article, talk about its continued improvement in profitability and other metrics,and talk about the catalysts that are still in place to help unlock the value of the company.  Directly below is the introduction of the updated BOBS article.

I wrote my first article about the Brazil Fast Food Company(BOBS.OB) in December after having them recommended to me by Red from The Red Corner Blog. I have held them since buying into them at that time and after having a great discussion on the current valuation in the comments section of the original BOBS article on my blog I decided to completely revalue BOBS to see if it is under or overvalued now that the company’s share price has gone up from about $8 a share when I first bought to $14.50 per share now.

For the most part BOBS is operationally the same as the above article, except that it has continued to expand its restaurant count and number of franchisees, so please refer to that article if you are interested in hearing about its operations, competitive advantage that I think it has, and to see and compare its valuations, margins and catalysts from then to now. In this article I will be concentrating solely on its updated valuations, NOLs and a few other important factors like ROIC, EV, TEV, working capital, shareholders’ equity, debt, catalysts, a new potential risk, etc. Since I was not doing any kind of in-depth analysis of float I will also add this one thing to the article that wasn’t in the original.

Book Cover Design Contest For How To Value Invest, Answering A Reader’s Email To Me, Graham-Newman Letters, And A Mini Review of The Einstein of Money

Started A Book Cover Design Contest For My Upcoming Book How To Value Invest

I started a book design contest on 99designs.com yesterday for my upcoming book How To Value Invest.  The first several submissions are excellent and I am extremely excited to see what I finally decide on.  The contest winner will win a portion of the $299 prize so if you know anyone who is creative please pass this along to them.  The contest for my book can be viewed here.  Seeing the potential book covers with my name as the author on the cover and the title is very surreal and exciting thing.

Answering  A Readers Email To Me

I received this email yesterday and wanted to share my response with everyone.  I have edited out this persons name, place of residence, and the university they are studying at to keep the persons privacy intact.

Dear Mr. Jason Rivera,

I really appreciate your hard work you are putting in your site and I am an avid reader of it. I would like to seek your advice regarding a decision I am facing. My goal is become a value investor and establish my own asset management firm to manage my own money and other people’s money. Right now, I have the opportunity to pursue partnership in my family business and be able to run it along with my father. I am 23 years old, and I am a freshman student at the blank university. If I am to be a partner in my family business, I have to drop out from the university and travel to Dubai, United Arab Emirates, where the business is. I am still a freshman student because when I was 19 years old, I dropped out to establish my own business in the same industry as my family in blank country. I had an experience running a business and I had the opportunity to sell my business after two years of operation to my cousins, and, thankfully, it was a profitable venture.

My family business is somehow facing sales shrinkage and cash flow problem due to low capital (my family made terrible mistakes in managing it) and economic downturn. They are specialty contractors and manufacturers of fenestration products (windows, doors, kitchens, curtain walls, and rolling shutters). If I am to work with them, I can be able to help them in reorganizing the company. It might be risky for me, but if everything worked out well enough, I will have earnings that I believe is better than being an employee.

I am facing a decision that I need to make. You might not be able to advice me, but whatever advice you give me, I appreciate it. If my goal is to manage my own money and other people’s money by establishing my own asset management firm, is it helpful to have a university degree or the experience of having ran a business? Shall I drop out and pursue my family business opportunity? If I am to continue studying, I will incur student loan debt which I won’t prefer. But, alas, I will do it if it need be to accomplish my goal. Thank you a lot.

My response below to this very important question.

Nice to make your acquaintance and thank you for your kind words about my blog and work, I greatly appreciate it.

I will let Warren Buffett give you some advice before I give you my thoughts. “I am a better investor because I am a businessman, and a better businessman because I am an investor.”

I am admittedly biased against college due to how much money you have to pay, for classes that you do not want to take, and for the return that you get on your money after graduating.  I have not been able to go to college due to health reasons.  Most of my friends and family have gone to college, finished with at least a Bachelor’s degree (or sometimes even a Master’s Degree) and almost all of them have had problems finding jobs or being paid what they should be getting paid, all the while being saddled with hundreds of dollars a month payments due to student loans payments.  From all the people I know who have gone to college I do not think it is worth it unless you want to become a doctor, nurse, engineer, teacher, or a related field like those.  Almost everything else can be learned online for free/cheap now.  Almost every person I know who has gone to college and has graduated with Bachelor’s or Masters degrees have been told when they look for a job that the reason they weren’t being hired, or weren’t getting paid more, was because they didn’t have ENOUGH EXPERIENCE.  Experience is still king in most cases. I have been told many times that I know more about investing than most MBA’s and professional level investors and I am completely self-taught from mostly free resources I have found online.

The only reason you will need a degree is if you want to work at an investment firm since most people won’t even look at your application unless you have a Bachelor’s degree or are a CFA.  If you want to be your own boss this isn’t necessary.

If you want to open up your own investment firm it is most likely going to be better for you to quit school (You can always take classes online if you do want a degree) and gain all important experience and contacts by working at your family business.  I would also recommend taking some of the money you do earn, invest it, refine your processes, get better, and keep track of your returns.  The main thing potential investors in your firm will be looking for won’t be degrees, it will be your investment track record and how well you have done over time in your own portfolio and the portfolios that you manage.  I would also recommend starting a blog so your record can be public and people can see how you have done over time as well.  You will also get great feedback and improve a lot faster this way as well.  Since starting a blog I have improved more in the last year than in I did in all the previous four years combined.

Remember that I am very biased against going to college because in most cases I do not think that it is worth it so keep that in mind when thinking about what I have said.

I also have packages of my upcoming book where I will give you advice and critique your work as well if you would want me to help you on the investment front.  If you would like further instruction let me know and we can work something out as well.  I love to teach and help so please let me know if this interests you at all.

I hope this has helped, please let me know what you decide, keep me up to date with how things are going, and let me know if you would like me to help you in any way that I can.

Jason Rivera

Value Investing Journey

After I sent that email I realized that I forgot to include a few things that I wanted to but forgot to include.

  1. Treat everything that you do as a learning experience.
  2. Do the best that you possibly can at everything.
  3. Give 100% effort and focus to everything that you do.
  4. Try to improve yourself every day.
  5. Learn something new every day.
  6. Push yourself out of your comfort zone every day.

If you can do the above things on a consistent basis you will do very well in whatever you choose to do.

Do any readers have any other input on this situation, maybe someone who has a contrasting point of view to mine or maybe something that I missed about this situation.

If anyone else has any other questions you would like to ask me I would love to have you email me and converse with you and I will try to help you out in any way that I can.

Graham-Newman Letters

While I was finishing up listening to the audio book of The Einstein of Money: The Life and Timeless Wisdom of Benjamin Graham the other day the conclusion part of the audiobook mentioned that some of Benjamin Graham’s shareholders letters from his partnership had been transcribed and circulated.  I immediately searched for them and found the Graham-Newman partnership letters and wanted to share them with you.  As I tweeted out the other day I cannot believe that I did not know about these before and I am going to start reading through them immediately.

I would also like to mention that if you have ever been interested in listening to an audiobook before I highly recommend Amazon affiliate Audible.com.  They are offering two free audiobooks when you sign up for a free trial right now.

Mini Review of The Einstein of Money: The Life and Timeless Wisdom of Benjamin Graham

I only got to listen to one book on my trip and it was one I had wanted to read for a long time and I am glad that this was the audiobook that I picked.  The Einstein of Money is a must read for Benjamin Graham admirers or value investors of any stripe.  The book is a biography of one of my personal investing heroes and chronicles his personal and investing life.  Even though I have read a lot about Graham and his investing methods I still found the book worthwhile, even for more advanced investors.  The book will be a great introduction to beginning value investors as well because it goes over most of his investing philosophy and techniques.  The book is a lot shorter and less dry than Security Analysis (Which I still recommend every serious value investor to read) and the Intelligent Investor (Still one of my all time favorite books) and since it is a biography delves into Mr. Graham’s personal life a lot.  I found a lot of the stuff on his personal life very interesting because I knew almost nothing about Mr. Graham outside of the investment world.  The book chronicles his failings as a husband, how he got started in investing, his outside interests (Who knew the man wrote many other books that weren’t related to investing and even wrote a couple plays), his college years, etc.

If you are even remotely interested in Mr. Graham the investor, his value investing philosophies, and learning more about his personal life than I highly recommend that you read or listen to this book.

Back From Vacation, First Preorder of a Premium Book Package, and Immediate Plans

Back From Vacation, First Preorder of a Premium Book Package, and Immediate Plans

I am now back from my vacation to beautiful Boise Idaho where I was visiting family and I am ready to start rolling again. By the way if you want to ever want to visit somewhere that is incredibly beautiful and you like mountains, forests, and rivers, I highly recommend you visit the Bozeman Montana area.  Bozeman itself and about 2 hours west of there is some of the most beautiful scenery I have ever driven through and I would highly recommend visiting there sometime if you like those kinds of scenery.  While I was on vacation I also got my first preorder of a premium book package and was really excited about that.

Now that I have recharged a bit and have gotten the bulk of the book done except for editing and advertising I am ready to start digging into companies again.  There has been a great discussion going on, on my first Brazil Fast Food article in the comments section (Would love more people to join in as well) about its valuation and I have decided to post a mini article next week where I will show you updated valuations of BOBS now that it has been about six months since I originally wrote about them.

I also plan to finish up a couple of books I was reading and listening to on my trip and after I finish those and the updated BOBS valuation article I am going to start digging into company financial reports.  I knew I have missed reading and evaluating companies while I have worked on the book over the past several months but I did not realize how much I missed it until yesterday when I started revaluing BOBS.  So excited to start bringing you valuation and analysis articles again as soon as possible.

Preorder How To Value Invest: How I Taught Myself To Become An Excellent Value Investor And How You Can Too

How To Value Invest: How I Taught Myself To Become An Excellent Value Investor and How You Can Too

This book has taken me nearly 5 years of hard work reading and listening to thousands of books, websites, articles, and lectures, and thousands of hours of research, writing, and learning to put together.   The book is geared towards beginner and intermediate level value investors to help reduce the main problem and frustration I had when I started to teach myself; wasted time.  Because of my health issues I could not go to a university to learn how to value and evaluate a company so I had to search the infinite internet myself; page by page, article by article, and book by book.

In the book I have condensed and will share with you all the best information that I have learned from, and some of what I will teach you is below:

  1. How to use the valuation techniques that I use, how to adjust them, and what they mean for the overall investment thesis.
  2. How to properly evaluate a company’s financial reports, profitability ratios, and debt ratios to help decide if the company is a potentially good investment.
  3. I will show you how to factor NOL’s, bad management decisions, float, competitive advantages and much more into your investment thesis.
  4. I will go into great detail about my own thought processes, why I came to the decisions I did, and how to develop your own thought and investment processes.
  5. I will tell you the proper mind-set and character traits that you either need to have or will need to develop if you want to become an excellent value investor.
  6. I will tell you how I make sell decisions now and how I used to make them.  This includes me sharing how I missed out on a nearly 70% gain in 100 days because I didn’t have the proper sell decision processes in place when I was fully invested and how you can avoid the same mistakes.
  7. I will share with you how I do research now and how I used to do research by showing you how I now discard bad companies a lot faster which has saved me a lot of time and leads me to finding better companies quicker.
  8. I will share with you all the best books, websites, and resources that I have learned from.

If you have read this blog from the beginning there will still be a lot of information that I did not include in my original articles that will be included in the book.

I have condensed all the best information that I have learned from over the past 5 years in this book so that you can jump-start your own value investing journey in a much shorter time frame than it took me.  If you learn and put into practice what I show you in the book, work hard, continue to learn, and develop your own proper thought, investment processes, and mind-set than I guarantee that you will be a better at evaluating companies for investment than most MBA’s and professional level investors all for less than 1/3 of the price of ONE college textbook, for a fraction of the cost of going to a university, and you will also be saving yourself YEARS of time from having to find all of this information by yourself like I had to.

As of now the book has just under 62,000 words and should be around 210 pages once converted to eBook and Kindle formats.

Since I have not been able to find anything to set up actual preorders for the upcoming book I have decided to take “donations” as my version of preorders.  If you decide that you want one of the below packages just hit the donate button below the package you want and donate the required amount.

IMPORTANT!!: Unless you want to donate more than the required amount remember that each package is discounted 25% now so donate the amount in parenthesis when preordering.  Once you “donate” I will get all of your information and when the book is released I will send you a coupon to get the book for free since you already donated the price of the book.  If you preorder from this blog you SHOULD NOT order the book from Amazon or anywhere else the book will be published or you will be charged twice.  Please come back and order the book from this blog when it is released so you do not get charged twice.

The first $2000 of preorders will also be helping to support this new site and paying for the cover design of the book as well.  If you are in the first $2000 of preorders you will be mentioned by name in the Acknowledgements section at the beginning of the book and I will also plug your blog if you have one in that section and on this site as well.

All preorders will receive an extra 3 chapters that I cut (about 30+ pages) for free once the book is released.  All $100+ premium packages that are bought will receive the extra 3 cut chapters even if you did not preorder.  All bulk orders of 10 or more books will also receive the 3 chapters that I cut even if you did not preorder as well.  Bulk orders of 10 or more eBooks or paperbacks will also receive a 50% total discount on any package and is a perfect option for high schools and universities.  If you are an educator and would like to have this book in your classroom please contact me directly because I would love to talk with you about how to use this book in your curriculum

Paperback orders will be fulfilled by Amazon affiliate CreateSpace once I upload the book and am ready to publish.

Planned release date is September 4th, 2013.

Preorder now as all the packages below are currently discounted by 25%.

$39 for eBook, $49 for Paperback Basic Package (With current 25% discount; $29.25 and $36.75 respectively.)


~210 page eBook that contains all the best information I have gained over the last 5 years that will teach you everything you need to know to become an excellent value investor.

Continued access to all the free content I put on the adjoining blog.

$100 (With current 25% discount $75) eBook or Paperback Silver Package


 ~210 page eBook that contains all the best information I have gained over the last 5 years that will teach you everything you need to know to become an excellent value investor.

Continued access to all the free content I put on the adjoining blog.

1 hour of research that I will do on any requested company you would like me to look into OR a 1 hour critique of an article/report that you are getting ready to write for work or college classes.

Will receive the extra 3 chapters I cut from the book, an extra approximate 30+ pages, even if you did not preorder.

$500 (With current 25% discount $375) eBook or Paperback Gold Package


~210 page eBook that contains all the best information I have gained over the last 5 years that will teach you everything you need to know to become an excellent value investor.

Continued access to all the free content I put on the adjoining blog.

1 hour of research that I will do on any requested company you would like me to look into OR a 1 hour critique of an article/report that you are getting ready to publish for work or college classes.

I will look at one of your entire articles or investment thesis, do a bit of research into the company myself, and give you feedback on where I think you can improve.

Will receive the extra 3 chapters I cut from the book, an extra approximate 30+ pages, even if you did not preorder.

$2000 (With current 25% discount $1,500)  eBook or Paperback Gold Package


~210 page eBook that contains all the best information I have gained over the last 5 years that will teach you everything you need to know to become an excellent value investor.

Continued access to all the free content I put on the adjoining blog.

1 hour of research that I will do on any requested company you would like me to look into OR a 1 hour critique of an article/report that you are getting ready to publish for work or college classes.

I will look at one of your entire articles or investment thesis, do a bit of research into the company myself, and give you feedback on where I think you can improve.

I will do full research into any company you want me to (Excluding all financials except insurance companies, pharmaceuticals, and natural resource/mining companies) and write-up a full length article on them for you giving my thoughts on if they would be a potentially good investment now.  The article will remain my property with my name on it and I will be allowed to post it on my blog and anywhere else I see fit.

Will receive the extra 3 chapters I cut from the book, an extra approximate 30+ pages, even if you did not preorder.

$10,000 (With current 25% discount $7,500) eBook or Paperback Aspiring Warren Buffett/Tim Ferriss Package


~210 page eBook that contains all the best information I have gained over the last 5 years that will teach you everything you need to know to become an excellent value investor.

Continued access to all the free content I put on the adjoining blog.

1 hour of research that I will do on any requested company you would like me to look into OR a 1 hour critique of an article/report that you are getting ready to publish or do for work or college classes.

I will look at one of your entire articles or investment thesis, do a bit of research into the company myself, and give you feedback on where I think you can improve.

I will do full research into any company you want me to (Excluding all financials except insurance companies, pharmaceuticals, and natural resource/mining companies) and write-up a full length article on them for you giving my thoughts on if they would be a potentially good investment now.

Instead of the article remaining mine, in this package the article would be in your name as if you researched the company and wrote the report.  This is a great way to impress your bosses or college professors and is also a great way to get out of having to do the work yourself if you would rather be spending your 80 hour “work” weeks doing something fun.

Will receive the extra 3 chapters I cut from the book, an extra approximate 30+ pages, even if you did not preorder.

REMEMBER: Unless you want to donate more than the required amount remember that each package is discounted 25% currently so donate the amount in parenthesis when preordering.  Once you “donate” I will get all of your information and when the book is released I will send you a coupon to get the book for free since you already donated the price of the book.  If you preorder from this blog you SHOULD NOT order the book from Amazon or anywhere else the book will be published or you will be charged twice.  Please come back and order the book from this blog when it is released so you do not get charged twice.  Also make sure to mention in the donation, or in a direct email to me, if you want the eBook or paperback version of the book.


Announcing The New Value Investing Journey Blog. Another Big Announcement Tomorrow.

Welcome to the new Value Investing Journey Blog, the same as the old blog for the most part but in order to sell things, like my upcoming book, I had to switch over to a self hosted WordPress site instead of the free WordPress blog that I was using.

I have also added some advertising to help pay for the cost of this site and added a donate button which I will talk about in my post tomorrow.  I have made the advertising as obvious as possible so that you can avoid it if you do not want to click on it.  If you would like to buy some of the products I am advertising you can click on the links and everything you buy though the advertising links on this blog will help to fund this new site and would be very much appreciated.  I have also added an Amazon widget with my value investing and related book recommendations and if you decide to buy anything through that you will also be helping to fund this new site as well and again it will be very much appreciated.

I have a big announcement tomorrow as I will be announcing the title of the upcoming book, describe what I will talk about and teach in it, the date I have planned to release, and I will start taking “preorders” for it as well.

Please follow this new blog because the people who were following the old one do not seem to have transferred to this one.  Also make sure to follow me on Twitter, Facebook, and Linkedin for all future updates about the book and all future postings from this blog as well.

Also would you please let me know if there is anything that is not working or anything that I could do to improve this new site.  I know next to nothing about running my own site, coding, or how to make this site run as efficiently as possible so if the site is running slowly or you think there is anything you think I could improve on please let me know.