After an outstanding Q2, Q3 was a much more sedate affair for the VSG Premium portfolio where we posted a 4.49% return compared to 5.25% posted by the broader market as measured by the S&P 500 (total returns). This takes the VSG portfolio returns to 31.73% for the year which compares favorably with 19.79% with… [Read More]
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July 22, 2013 marks the 4 year anniversary of Value Stock Guide Premium Portfolio. While I have run my own portfolio for over 18 years now, on July 23, 2009 I turned over my portfolio to Covestor so they can independently audit the performance. The Covestor relationship no longer exists. In January last year, they… [Read More]
As of Jun 25, the Value Stock Guide Premium portfolio is now up more than twice S&P 500 for the year. The following performance data shows the Total Returns (dividends are included) and are net of commissions. Period VSG Premium S&P 500 YTD (2013) 26.23% 12.50% QTD (Q2, 2013) 13.56% 1.71% MTD (Jun, 2013) 3.73%… [Read More]
Back in November 2012 we invested in Maxygen (MAXY) based on a simple premise. The company was in the process of liquidating and returning capital to the shareholders, and had no ongoing operations. Since they had more cash sitting on the books than the market value of the company, some return was guaranteed. Without any… [Read More]
It might appear that I am raising cash because I believe that the market is frothy. There might be some of it but in reality the investment process I follow makes me buy when the stocks are low and sell when they are high. Disciplined investing with the right strategy automatically makes you cash heavy… [Read More]
Last Friday we exited our best performing investment. Purchased Sold Apr 19, 2012 May 3, 2013 Price: $1/warrant Price: $3/warrant Net Gain: 199.11% net of commissions The warrants have tripled one time before as Andrew Tobias points out. With this triple, the warrants have returned 9 times the original investment in the last 3.5… [Read More]
Ebix Inc has entered into an agreement to be acquired by Goldman Sachs for $20/share. After the news broke (May 1, 2013), I recommended members to sell all EBIX stock and sold my position at $20.50/share. We were able to sell the shares at prices ABOVE the acquisition price for two reasons: The market believes… [Read More]
As you probably know, American Greetings (AM) is going private. A group of the founding family members (Weiss) have offered $18.20/share and the board has accepted the offer. The deal is expected to close in Jul 2013. I recommended and bought the stock first in Dec 2011. Over the last 15 months, I have added… [Read More]
Freeport-McMoran Copper and Gold Inc (FCX) explores and mines mineral resources, primarily Copper, Gold and Molybdenum. Recently, the company has made moves to enter the energy market by acquiring Plains Exploration and Production Company and McMoran Exploration Company for $20 B combined, which gives it access to high quality US Oil and Natural Gas reserves…. [Read More]
As we continue to grow, it has become necessary to simplify the membership options. The current plans have worked very well, sometimes too well, but they require more maintenance than I can reasonably put in without affecting the main focus of my work: researching and delivering outstanding investment recommendations. The following change will take effect… [Read More]
Buy and Hold does not make you money. There is no virtue in holding on to a stock that has reached its fair value. Even less so, if it has exceeded it. While this is not a new insight, 2012 provided ample examples supporting this very basic principle of value investing. But let’s start by… [Read More]
This article today comes from my good friend Tom. Tom’s expertise lies in trading stock options and while long term investors might consider options as a risky instrument, the utility of options for hedging and strategic use of leverage cannot be overlooked and they should always be part of a serious investor’s arsenal. Hope you… [Read More]
The Value Stock Guide portfolio is positioned for a strong close in 2012. With just one month to go, the portfolio has returned 32.27% so far this year, which compares well with 12.67% return on the S&P 500 index. In November, we initiated 1 new position and no positions were sold. The following table and… [Read More]
Before you worry that Autonomy sucked the wind out of HP’s sails, remember, HP does not even know where the ship is going. My recommendation? Keep avoiding the stock.
While updating the portfolio performance figures today I realized that I did not report the sale of DEXO from the Premium portfolio, as I typically do for my readers. So here it is DEXO Sale On Oct 25, I sold out of the remaining 50% of the DEXO I still owned and recommended the members… [Read More]
For value investors, active portfolio management remains much more an art then science. There is sufficient value investing literature available that describes the methods and processes of fundamental analysis to find appropriate value stocks. Not much is said about how you might go about creating an optimum portfolio structure that includes appropriate stock selection and maintenance over time.
As you recall, we ended Q2 with 18.74% YTD returns. Q3 turned out to be relatively eventful with several nice exits. Before we go into the details of the exits, let’s recap the quarterly performance to date for 2012. 2012 Performance, YTD Q1 Q2 Q3 Since Inception (Jul 23, 2009), cumulative Value Stock Guide Portfolio… [Read More]
About a week ago I opened up the Lifetime membership to the premium service and the response from you has been spectacular. I just want to take a few moments and thank all the new members who have taken advantage of this offer as well as the current members who have upgraded. Based on the… [Read More]
In the previous article in this series, we looked at the lifecycle of a business from startup to growth, maturity and decline. We also learned that value investors typically look at the businesses in the mature and decline stages, although there are always exceptions. In this article on BCG Matrix, we will build upon this basis to see how companies can and do act in practice to maximize their value growth.
Business life cycle is one of the key constructs to conceptually determine the different stages of a business. These stages are important for an investor to know as they tell you whether the company will grow, sustain or decline. This has tremendous implications on your investments.