Friday, January 29, 2016

Conversations with my son - Hairs on Coins



First of all, I would like to apologize to the teachers and educators reading this post. I am sure that teaching a bunch of wild kids can be difficult and tiresome, and this post is not meant to be critical of your excellent work. 

A couple of weeks ago, I blogged that our kids are not taught basic finance in our (US) schools. 

Well, I was wrong! Apparently, they do teach this stuff at schools. 

Sunday, January 24, 2016

Metrics: 10 Year Trends for DGI Stock Analysis (and Google Spreadsheet Tool)

 


As part of my analysis of DGI stocks, I like to see the 10 year trends of the key metrics. Sometimes this gives me a bigger picture of how a company is performing over a 10 year period - e.g. it is good to see how well a company performs during a recession etc.

I normally review the following metrics:
  • Revenue and EPS
  • ROE and OM
  • FCF, Earnings & Dividends
  • YoY Dividend Growth
  • Payout Ratio
  • Debt to Equity

So, where can I get this data?

Thursday, January 21, 2016

Recent Buys (Tax Deferred) - MMM, DEO, UL

With the market dropping like a stone, I bought some shares in the following companies:

Date
Transaction
Ticker
Price
Quantity
Amount
1/13/2016
Buy
MMM
138.99
20
2792.55
1/15/2016
Buy
DEO
101.88
30
3069.45
1/15/2016
Buy
UL
40.13
75
3022.50

Monday, January 18, 2016

D4s Valuation Tool Google Spreadsheet


A few weeks ago, I received an email asking how I value my companies in my purchase reports. I used to link my post describing the DDRM, Yield theory and PE methods, but I guess I have been lazy lately. In any case, sometimes it's difficult to go through several spreadsheets. Plus, it's a pain to update the web scraping functions in multiple sheets.


So here it is - one Google Spreadsheet with my valuation methods. This current version has the following:
  • Yield Theory Valuation Method -
  • DDRM total return Method
  • P/E earnings multiple Method with EOY 2016 estimate


Please read the previous articles for more information.


Thursday, January 14, 2016

Weekly Purchase 13 - ADM

Rough Waters


With OPEC Price War, China, North Korea, terrorist attacks around the world, it is not surprising the market is taking a dump. The only certainty is higher volatility.


If you are on a boat, and the waves are going up and down like the market, you will definitely get sea sick. So, what do you do? Focus into the distance. Look for the horizon.


Control what you can. You take out your paddle and start paddling away. Adding a motor should help. In any case, don't give up.

Monday, January 11, 2016

Recent Buys (Tax Deferred) - MMM, HSY, TROW, JNJ

Falling Knife


Sometimes, I feel that I am trying to catch the falling knife. The companies that I buy immediate plummet in price. For example, I bought some MMM last month and it dropped almost 10 points!

A lot of people advocate using technicals so that they do not catch the falling knife, and just buy on the upwards direction. There are many ways --  eg using the rolling average, or even the relative strength.

However, I am very lousy at market timing. Very lousy.

Tuesday, January 5, 2016

December Summary



I must apologize for the tardiness of my December Summary - I was on vacation for the last couple of weeks. Overall, it has been a quiet month for me in terms of articles written as well as my investments. 

Please check out my articles last month:


I only managed one trade on my taxable account and a couple on my 401k tax-deferred account.


Taxable Account


Just one purchase. The reason is because I need to save for my property tax and insurance bill which are due in January.


Date
Transaction
Ticker
Price
Quantity
Amount
Dividends/Year
Est. For Dividend
12/1/2015
Buy
YUM
73.85
13.49
996.05
1.84
$24.82




Total
$996.05
Total
$24.82


Sunday, January 3, 2016

Keeping up with the Joneses

While enjoying my time off during the holidays with my family and friends, I heard quite a few “keeping up with the Joneses” stories. One particular story involved my wife’s friend buying a fancy new BMW SUV for a daughter who recently got her driver's license. This is because the friend’s cousin bought a nice Mercedes for her daughter. What's wrong with these people? For sure, my son will not get a new BMW.