Where Are The Company Analysis Articles?

Where Are The Company Analysis Articles?

All this talk about learning.  Failure.  And how you’re going to help the world is great.  But I’m sure you’re wondering where the company analysis articles are?

Before I got hired the articles I wrote analyzing and recommending companies were by far the most viewed things I posted.  So I’m sure many of you have wondered when I’m going to start releasing these again.

Well it will be soon…

April 21st Will Be When I Release My First Company Analysis Recommendation on This Blog in More Than Two Years

Mark your calendars for April 21st.  This will be when I release my first company analysis article on this blog in more than two years.

Why Haven’t I Released An Article In The Last Two Years?

I haven’t released a new analysis article recommending a company in more than two years.

Why is this?

Since January 2013 when I recommended Unico American Corporation (UNAM) I’ve started two businesses.  One that failed.  And one that is successful.

Was hired full-time by a great company for six months.  Spent a huge amount of time learning.  And taking time away from analyzing companies.  This is because I found the stock market – and all companies I wanted to buy – overvalued.

While the stock market has continued to rise for the last two years and is still overvalued.  I’ve developed a new process that allows me to research companies faster.

This new process allows me to discard bad companies fast.  It allows me to find good companies in a fraction of the time it used to.  And it’s enabled me to so far find three companies that I will write articles about in the coming months.  Five if you count the two I already recommended when working.

There are still pockets of value out there.  It just takes time to find them.  And this new process saves me a ton of time.

So what is the article about?

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Side Note

Subscribers to this blog have already gotten access to this process that I’ve released for free.  If you would like access to it go to this link to subscribe.

When you sign up you will also get a free 20-page glossary of terms I’ve released for free to subscribers as well.

I use both of these things every time I research companies.  And they’ve helped me cut down my preliminary research time by 90%.

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An Investment That Will Gain You At Least 21% This Year.

And As Much As 215% Over Time

This article will be about a sub $200 million company that has a 4.9% dividend at the time of this writing.  Is in a great industry.  It has competitive advantages.  And it produces great margins and a ton of cash.

Since its business model does not require a lot of investment through cap ex.  The company has paid out 87% of the cash it’s earned to shareholders in the form of dividends since 2011.

And this isn’t all…

The company also has no debt.  It is undervalued by 21% now to its worst case scenario valuation.  And could rise as much as 215% over time to reach its true value.

With how I classify things for this blog it’s a Warren Buffett type of investment.

File:Warren Buffett KU Visit.jpg

You’ll love this pick when you see it.  And I’m sure it will make you money if you buy it.

In the next post I will explain how and when I’m going to release my company analysis articles going forward.

Weekend Upgrades – Improve How You Think, Invest, and Live #3

Weekend Upgrades – Improve How You Think, Invest, and Live #3

Bruce Berkowitz Has A Blog via @crowdturtle – Value investing master – and runner of the Fairholme Fund – sharing his thoughts on all things investing.  Some of the content includes him talking at the University of Miami.  Personal trips.  And his thoughts on his investments.

 

The Art of Learning: The Tool of Choice For Top Athletes, Traders, and Creatives via @TFerriss –   A book recommended by Tim Ferriss, Mark Messier, Deepak Chopra, and Cal Ripken Jr. among others.  This link includes a free chapter of the book as well.

I haven’t read this yet even though its been on my to read list for a while.  But have heard nothing but great things about it.

 

Brazil Fast Food Enters Into Definitive Agreement To Go Private at $18.30 Per Share – Big surprise here #sarcasm.  The “special committee” approved BOBS plans to go ahead.  And “unanimously agrees” that the deal is a good deal for shareholders.

As I explained in last weeks post on this exact topic, I expected this to happen since BOBS and Queijo are paying the fees for the “special and independent” committee.  The only way this deal will stop now is if just fewer than 10% of remaining outside shareholders vote the deal down.  Which is unlikely at best.

 

Master of Influence Robert Cialdini Recommends Five Books via @farnamstreet.

Peyton Manning, Buffett, and Munger via @sovagroup.

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To gain access to a free 20-page gift that will help you evaluate companies faster.  And is something I use every time I research a company.  And to make sure you get all future posted content. Go to this link.

 

Warren Buffett And Charlie Munger Are Failures

On Failure Part Two

I wrote a version of this post a few days after leaving my job almost a month ago and planned to keep it private.  But it helped me get over losing my job.  And helped me get over the anger, sadness, depression, fear, and other emotions I felt.  So I’ve decided to share it with everyone.

Rough times happen to everyone from time to time.  But destructive thoughts if left unchecked can lead to bad things.  I’m sharing this post in the hopes of helping someone else who may be going through their own rough times.

But I’m not the best resource to learn from on failure… Let us learn from a couple masters who both failed before making billions of dollars.  And helping millions of people around the world.

Warren Buffett and Charlie Munger Are Failures

Warren Buffett’s biggest failure is now his biggest triumph.  And he uses this “failure” to help millions of people throughout the world.

One of Charlie Munger’s first major investments failed.  But he used that “failure” to become rich and help the world too.

I have failed.  And I will now use this “failure” to help make the world a better place like Buffett and Munger did.

But before we talk about that we need to talk about three major failures.

Warren Buffett’s a Failure

File:Warren Buffett KU Visit.jpg

In the 1950’s and 60’s Warren Buffett started an investment partnership with $100,000 of his own money.  And money he raised from family and friends.

Over time he built the firm by buying portions of smaller companies whose prices were cheap.  He did this so well that soon after starting he was able to buy entire companies instead of just portions of them.

But he soon failed…

Berkshire Hathaway Is a Failure

The original Berkshire Hathaway was a textile company based in New England.  When Buffett took it over no matter what he did the company continued to lose money.  This was because new and cheaper foreign and non union Southern US companies made it impossible for Berkshire to compete on price.  This led to the company losing millions of dollars over the years after Buffett bought it.

As this continued for years Buffett came to realize he was fighting a losing battle.  And instead of continuing to pour money into Berkshire and letting the business fail.  He used this money to buy companies that would make money instead.

He started buying smaller insurance companies.  And used the excess funds from these insurance companies – insurance float – to buy even more profitable and undervalued companies.

In doing this he turned his original $100,000 investment funds into the $357 billion behemoth it is now.  Today Berkshire is one of the biggest companies in the world.  And it owns some of the most valuable companies and brands on Earth.

But by his own admission he wouldn’t have done as well without teaming up with another failure.

Charlie Munger Is a Failure

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Charlie Munger was first a high profile lawyer.  And then a property developer in California before becoming a full time investor in his late 30’s.

His fund did well for years as he built up the companies assets.  And one of his first major investments was in a company called Blue Chip Stamps.

It was a stamp trading company that also produced a lot of float. For example, if you gained 100 stamps you could exchange the stamps for a prize like a vacuum cleaner.

When Munger bought Blue Chip it was growing and producing a lot of excess cash.  At its peak in 1970 Blue Chip generated $126 million in sales.

But Munger recognized a problem a few years after buying Blue Chip.  Sales began to decline fast.  And nothing Munger did stemmed the tide of falling sales

Instead of letting it fail he used the excess funds from Blue Chip – which was still profitable while sales fell – and used these funds to buy other companies.  He eventually bought Wesco which is an insurance/financial company.  And used the float from this business to buy ever bigger stakes in profitable and undervalued companies.

Sound familiar?

By this time Buffett and Munger had met, exchanged ideas on a regular basis, and were friends.  But they still didn’t work together.

Munger did such a great job running Blue Chip that Buffett bought Blue Chip and merged it into Berkshire Hathaway and then a change occurred.

The Change of Mindset

Buffett has said when this happened, Munger helped change the way Berkshire invested its growing cash machine.  Instead of concentrating on just cheap companies that weren’t great businesses.  They turned their focus to companies that were cheap or fairly valued.  But now concentrated on good to great businesses.

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Side note on the book Mindset.

I first read the book Mindset after seeing Erik Spoelstra – multi time championship coach of the Miami Heat – recommend it.

It’s a phenomenal read.  And while I read this before the problems I had at my job.  The lessons I learned reading Mindset helped me cope with losing my job.

I cannot recommend Mindset enough not only for coping.  But also for teaching lesson on how to get into the proper “championship” mindset.

If these kinds of lessons interest you I also recommend The Obstacle Is The Way.

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Due to this combination of minds.  The change in mindset.  And the power of compound interest, Berkshire exploded…

But we will get back to that later…

I Failed Too

After overcoming debilitating health issues that lasted for 10 years.  After teaching myself about investing.  Writing my own full length value investing education book.  And then being hired, I failed.

I thought my knowledge about how to analyze a company’s balance sheet and investment potential was all I needed… I was wrong.

I thought I had all the tools necessary to succeed but I didn’t.  Hard work can only get you so far…

Without the proper mindset, and in my case purpose, you will still fail no matter how hard you work.  And I don’t mean fail at your job.  I mean you will fail yourself.  Your principles.  And what you are striving to become and build.

Buffett and Munger’s Failures Are Now Helping The World

Buffett and Munger grew to become two of the wealthiest, most powerful, and respected people in the world.

Mr. Buffett who has been one of top three most wealthy people in the world for years has gained 98% of his $77 billion net worth after the age of 65.

And will give 99% of this fortune to the the Bill and Melinda Gates Foundation upon his death.

Charlie Munger is worth $1.3 billion.  And has already given hundreds of millions of dollars causes he supports.

Both men not only plan to give billions of dollars to causes they care about.  But the luxury of having all the money they do enables them to also give time to these causes as well.  This is far more important.

While I can’t speak for Mr. Buffett and Munger on their motivations.  I can speak for myself…

I wasn’t making an impact on anyone else’s lives other than my families.  And I failed myself and what I’m striving to build.  That changes now…

My Purpose is Helping Others

This is what I had to learn by leaving my prior company and coming back to this blog.

Together we can make not only the lives of our families betters.  But those of the rest of the world as well.

This is my purpose…

This blog will no longer be about improving my own knowledge.  It will be about teaching and improving others lives.

I have several projects that I will announce over the coming weeks.  All related to finance and geared towards helping and educating as many people as possible.

While I can’t reveal what they are yet since they aren’t finished.  I can tell you today that part of all sales from this blog will go towards helping, educating, and feeding kids and adults who need a hand up.

5% – to start – of all sales from this blog.  My book.  And all future unannounced projects will go to charities of my choosing in the Philippines.  And also to local charities in my area.

The percentage given will grow over time as me and my family become more secure financially.  And the scope of the charities will grow as well.  But this will be a great start.

Together we can make a difference in people’s lives.   Do great things.  And improve the world.

Mr. Buffett and Mr. Munger are going to help tens of millions of people with the money and time they’re contributing.

How many people can a blog and like minded people help?

Let’s find out in the coming years.

Are there any books, articles, sayings, or lessons that you’ve learned that have helped you when you’ve failed in the past?

If so please share with everyone below so we all can learn.

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To gain access to a free 20-page gift that will help you evaluate companies faster.  And is something I use every time I research a company.  And to make sure you get all future posted content. Go to this link.

Weekend Upgrades – Improve How You Think, Invest, and Live #2

Weekend Upgrades – Improve How You Think, Invest, and Live # 2

Constant small improvement compounds and helps us become better in time. This new weekly Friday post will help us become better thinkers, investors, and people in time.

Sriracha Hot Sauce Purveyor Turns Up The Heat – “David Tran introduced Sriracha to the U.S. in the 1980s, and it quickly caught on. His company sells more than $60 million of it a year.” Entrepreneurship.  Problem solving.  Moats.  Building Businesses. Business competition.  Amazing story.

The Art Of Stillness – MUST READ.  Fascinating post about self-realization.  Taking a break.  Self awareness.  Learning.  Improving.  Information overload.  Stoicism. And more.  Post is so good I plan to buy the book to read.

MIT Engineers Beat The Complexity of Deep Parallel Processing – Efficiency.  Mental models.  Problem solving.

Rewire Your Brain to Defeat Traditional Thinking Traps – Fixing negative brain patterns.  Fixing self-defeating attitude and thoughts.

Vincent Van Gogh On Why Never Learning How To Paint Helped Him – “Probably then I would have LEARNED to ignore effects like this. Now I say, no, that’s exactly what I want — if it’s not possible then it’s not possible — I want to try it even though I don’t know how it’s supposed to be done.”  When I read this it brought to mind many of our own journeys to learn how to become investors by ourselves.  Without any formal education.

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To gain access to a free 20-page gift that will help you evaluate companies faster.  And is something I use every time I research a company.  And to make sure you get all future posted content. Go to this link.

The Potential New Brazil Fast Food Company Buyout

The Potential New Brazil Fast Food Company Buyout

A year and a half ago many bloggers. Hedge funds. Private investors. And I banded together to campaign against a horrible proposed buyout offer by Brazil Fast Food Companies (BOBS) controlling shareholders.

At the time I thought BOBS was worth a conservative $20 – $25 per share.  So the offer by company insiders of $15.50 was ridiculous.

We made enough noise. And got enough shares together that we were able to vote down the ridiculous low ball offer of $15.50 per share.

Well now there is another offer on the table. And several people have asked my thoughts on this new offer.

Queijo Holdings Offer To Buy Out Brazil Fast Food

In January I wrote my thoughts in this post – Sad To Be Losing Ownership of This Company That Gained 129% – about the offer.

I explained in that post that I expected the buyout offer to get approved. And to lose ownership of BOBS. But I didn’t explain why I thought this.

The Queijo Holdings offer of $18.30 per share for BOBS shares not owned by the controlling shareholders is still a low ball offer. In my opinion it is a certainty to get approved.

One reason is because BOBS insiders learned their lesson from the previous failed buyout offer.

A year and a half ago BOBS insiders didn’t presecure any non controlling shareholders votes on the proposed deal.  This time they have.

The way I understand it… This vote requires a simple majority of non controlling shareholders to vote yes to approve the deal. And this time BOBS controlling shareholders have already gotten 40% of the non control voters to approve this deal.

In addition, two independent stockholder groups of the Company that approached the Controlling Stockholders, which collectively represent 40.55% of the shares of common stock held by minority stockholders, have agreed with the Controlling Stockholders to support a transaction only if the Board of Directors recommends one at the price set forth in the proposal.

This means that only 9.46% more non controlling shareholders need to vote yes to approve this deal.  While I don’t know the results of the last vote.  I will bet BOBS got more than 9.5% of non controlling shareholders to vote yes for the transaction to approve it.

The above quoted area is from this site.

The above article also explains the other reasons why I am positive this transaction will get approved.

The article explains that a “special committee” must approve this deal before it can go through. But BOBS and Queijo Holdings are picking the “special committee.” So the special committees incentives are to approve the price. And approve the deal since BOBS and Queijo are paying their fees in this case.

And whoever pays the fees for something usually gets what they want.

The above reasons are why I am positive this deal will go through.

I hope I’m wrong because I don’t want to lose ownership of this company…

But these are the reasons I expect this deal to go ahead.

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To gain access to a free 20-page gift that will help you evaluate companies faster.  Is something I use every time I research a company.  And to make sure you get all future posted content. Go to this link.