I hear a lot of people talking about value investing but see very few actually practicing it these days. Once your asset base reaches a certain level, I believe that it is almost impossible to manage this style effectively. Therefore, I have been working diligently to further automate the research process. Yellow pads full of stock tickers and notes work fine for my current family-and-friends operation, but it looks like I will need to improve the process in the near future.
I have been torturing databases and spreadsheets for some days now in an effort to transfer the valuation information off the yellow pads and onto the computer. Although I am more a data troll than wizard, the process is coming along nicely. One of the four values I calculate for every stock is the intrinsic value of a company as a going concern. It serves as a measuring point for safe and cheap stocks and points to what a company will be worth if it does get the business back on track. It also has helped identify some growth oriented issues that are not asset heavy but nonetheless undervalued based on earnings strength and cash flow generation....553 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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