valuing-an-asset

Warren Buffett’s Formula for Valuing All Assets

January 17, 2017 | Read Now

Excerpt below from Warren Buffett’s 2000 letter to shareholders. Emphasis added.

Leaving aside tax factors, the formula we use for evaluating stocks and businesses is identical. Indeed, the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.).


2017-portfolio

The 2017 Action Score Portfolio That Will Beat the Market

January 16, 2017 | Read Now

Here are the rules for the portfolio.

No changes until end of the year, UNLESS a company is bought out and needs to be replaced.
20 stocks @ $5k each for a $100k portfolio
A grade stocks (but can include B if not enough A’s)
No OTC stocks due to many people not wanting or being able to buy them (nothing wrong with OTC stocks though)


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Beating The Market With 20% Returns. Reviewing Our 2016 Stock Grader Portfolio.

January 12, 2017 | Read Now

2016 was the first year our Old School Value Action Score that you see on the Old School Value stock analysis software took to the streets.

What is an “Action Score”?

In a nutshell, it’s a set of 9 (mostly value based) metrics used to score a stock between 0-100. Stocks are then graded based on their scores.

The #1 goal of the Action Score is to reduce the time spent trying to find ideas.

If you believe in the 80/20 rule, you’ll see that you tend to spend 80% of your time looking for stocks. Less (much less) than 20% of the time is spent on analyzing, thinking, valuing and learning about companies.

The #2 goal of the Action Score is to utilize a mix of uncommon metrics and fundamentals to create a quantitative strategy for people who are short on time, yet enjoy the DIY investing approach.


performance-results

2016 Free Value Strategies Performance Review

January 11, 2017 | Read Now

Results are in.

First, I’ll be going over results of the free value stock screeners and then in a few days, I’ll post the results of the Action Score with a breakdown of how each grade did.

I’m also excited to share a report later this month where the Action Score was independently tested to verify the accuracy and expected returns of the Old School Value Action Score.


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Ben Graham’s 1932 Forbes Articles

January 9, 2017 | Read Now

In 1932, Ben Graham became a freelance writer for Forbes during the bottom of the Great Depression.

Talk about timing.

With the economy sinking, it would have been tough to write about stocks will go back up. But true to form, in the middle of crashes and people’s accounts getting wiped out, Graham wrote about why the market was cheap with a healthy dose of common sense and objectivity.


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Our Market Beating Action Score – How Combining Quality, Value, Growth Metrics Produce the Best Results

January 7, 2017 | Read Now

An explanation of the Action Score: How the Action score is created using Q,V,G factors; What metrics make up Q,V and G; backtested results showing 20% CAGR over 17 years. Plus a free download of the top 50 Action Score Stocks.


retail-industry-thumb

A Deeper Look at the Retail Industry

January 6, 2017 | Read Now

The crowd of companies in this section [Manufacturing, Service and Retailing Operations] sells products ranging from lollipops to jet airplanes. Some of these businesses, measured by earnings on unleveraged net tangible assets, enjoy terrific economics, producing profits that run from 25% after-tax to far more than 100%. Others generate good returns in the area of 12% to 20%. A few, however, have very poor returns, a result of some serious mistakes I made in my job of capital allocation. I was not misled: I simply was wrong in my evaluation of the economic dynamics of the company or the industry in which it operated.
—Warren Buffett, Letter to Shareholders 2013


happy-new-year

2016 in Review and Most Popular Articles

December 27, 2016 | Read Now

years since I started writing at old school value.

There were a lot of firsts this year.

First time launching a web version of the good ol’ Old School Value stock analyzer.
First time managing, working and growing with a tight knit team spread across multiple countries and time zones.
First time my writing pace has dropped on the blog to 3-4 articles a month.


useful-links

Old School Curated Links and News (Dec. 19th Xmas Edition)

December 19, 2016 | Read Now

Written by Jae Jun follow me on Facebook Twitter Enjoyed this weeks readings as you get your Christmas preparations done […]


youre-special

The TRUE Father of Special Situations

December 15, 2016 | Read Now

As I continue to make my way through The Snowball: Warren Buffett and the Business of Life, there’s an extraordinary amount of details into how Buffett’s early partnership started, the original investments and the outcomes.

Following Ben Graham’s deep value background, Buffett spent most of this early days as an active investor.

Before Munger was able to convince him that buying compounding businesses at a reasonable price was the way to go, Buffett ran a special situation segment of his portfolio.
During his partnership years, this is what his allocation looked like.

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