1 value investing buying good companies that are out of favor with the market. …cheap!
TRANSCRIPT
11
Value InvestingValue Investing
Buying Good Companies thatBuying Good Companies that
Are out of favor with the market.Are out of favor with the market.
……CHEAP!CHEAP!
22
33
Value InvestorsValue Investors
To name only two of many:To name only two of many:
Warren BuffetWarren Buffet
David DremanDavid Dreman
44
Making Market Panics ProfitableMaking Market Panics Profitable
Be fearful when most others are investing Be fearful when most others are investing aggressively.aggressively.
Invest aggressively when most others are Invest aggressively when most others are fearful.fearful.– But invest selectivelyBut invest selectively
Think: Panic, time to make $$$ !Think: Panic, time to make $$$ !
Warren Buffet, approximate quotation
55
Tell ‘em what y’urTell ‘em what y’ur goin’ a tell em goin’ a tell em
I hope you read Dreman’s book.I hope you read Dreman’s book.This evening we’ll define Value & Growth This evening we’ll define Value & Growth InvestingInvestingShow you how to find Value companiesShow you how to find Value companiesGiven examples of “out-of-favor” companiesGiven examples of “out-of-favor” companies– And how to use CF, Book Value and the SSG to And how to use CF, Book Value and the SSG to
evaluate themevaluate them
Talk about dealing with the psychological Talk about dealing with the psychological barriersbarriersDiscuss when to sell themDiscuss when to sell them
66
Handouts, etcHandouts, etc
GE Cash Flow Statement from Sept. 2009GE Cash Flow Statement from Sept. 2009
JP Morgan Cash Flow StatementJP Morgan Cash Flow Statement
TEVA Income and CF Statement, latest TEVA Income and CF Statement, latest quarterly, (6-K)quarterly, (6-K)
77
Value vs. Growth Value vs. Growth
Value: Any company (growth or mature) that has Value: Any company (growth or mature) that has come upon bad times and whose price has come upon bad times and whose price has dropped.dropped.
Growth: A company whose sales and earnings Growth: A company whose sales and earnings are growing well above the market averages or are growing well above the market averages or GDPGDP
Growth in normal times if the stock is at a Growth in normal times if the stock is at a bargain pricebargain price
88
Value vs. Growth Value vs. Growth
Value dominates opportunities when Value dominates opportunities when economy is in crisiseconomy is in crisis– But also a few value opportunities in normal But also a few value opportunities in normal
timestimes
Again: Growth in normal times when the Again: Growth in normal times when the stock is at a bargain price. stock is at a bargain price. – Longer time horizonLonger time horizon
99
Possible Value CompaniesPossible Value CompaniesWe’ll check out a few of theseWe’ll check out a few of these
GEGEFRE, FMA, SMAFRE, FMA, SMAAIGAIGWFC, BOC, JPM, GS, C, WFC, BOC, JPM, GS, C, GM, FGM, F
Some of these will go out of businessSome of these will go out of business– Like Bear Stearns, Lehman BrothersLike Bear Stearns, Lehman Brothers– Don’t just buy them!!Don’t just buy them!!
1010
Finding Value CompaniesFinding Value Companies
The press dramatizes these and helps The press dramatizes these and helps drive the price downdrive the price down– Take advantage of itTake advantage of it
Screen for them, maybeScreen for them, maybe– Sales growth up, p/e down, cfo up, future Sales growth up, p/e down, cfo up, future
market opportunity = TEVAmarket opportunity = TEVA– Then the SSG screen and more analysisThen the SSG screen and more analysis
1111
Using SSG for Value Co.sUsing SSG for Value Co.s
Look for RR TracksLook for RR Tracks– Acceptable in prior years 2 through 5Acceptable in prior years 2 through 5
– Okay if broken in current years Okay if broken in current years IFIF
You can find evidence the You can find evidence the company will recover.company will recover.
Run SSGRun SSG
1212
Go to SSG’s ofGo to SSG’s of
GE General ElectricGE General Electric
FRE Freddie MacFRE Freddie Mac
JPM JP Morgan ChaseJPM JP Morgan Chase
TEVA Teva Pharmaceuticals TEVA Teva Pharmaceuticals
1313
Consider Buying CompaniesConsider Buying Companies that … that …
Had reasonable RR tracks in normal timesHad reasonable RR tracks in normal times
Are still financially sound with good Are still financially sound with good management.management.
Were slammed by events beyond their controlWere slammed by events beyond their control
Can come back… gorillas, Can come back… gorillas,
Are way under valuedAre way under valued
Are not necessarily “growth companies”Are not necessarily “growth companies”
Then, if a mature company, sell when the p/e Then, if a mature company, sell when the p/e and earnings reach historical levels.and earnings reach historical levels.
1414
Have an Exit StrategyHave an Exit Strategy
If a mature companyIf a mature company
Price growth may flatten when normal Price growth may flatten when normal times returntimes return
This is a shorter term situationThis is a shorter term situation
Thus, sell when price growth flattens; buy Thus, sell when price growth flattens; buy a growth companya growth company
1515
Financial Crisis StrategiesFinancial Crisis Strategies
Set aside cash reserve to last several Set aside cash reserve to last several years. years. Buckets of MoneyBuckets of Money approach, (Ray approach, (Ray Lucia).Lucia).
Put aside additional cash early to invest Put aside additional cash early to invest “at the bottom”“at the bottom”
Get out early. But there is a danger of not Get out early. But there is a danger of not having a real crisis having a real crisis
1616
Consider the Business CycleConsider the Business Cycle…an econometric model…an econometric model
Just a taste… Consider doing Just a taste… Consider doing more research on this if more research on this if
interested. interested.
1717
Qinsight’s InsightQinsight’s Insight
High at about14,200 Oct. ‘07
Ease offClose toPlunge
EaseOff
Plunge
EarlyRevival
Dow
05 06 07 08 09
1818
Financial Crisis StrategiesFinancial Crisis Strategies
Leading indicators: Wait for the “plunge” to end Leading indicators: Wait for the “plunge” to end and start value investing in sound undervalued and start value investing in sound undervalued companies in early revival phase.companies in early revival phase.
After “plunge”,Continue to buy regularly to dollar After “plunge”,Continue to buy regularly to dollar cost average back into the market.cost average back into the market.
Sell the mature companies you bought when Sell the mature companies you bought when their valuation reaches fair valuetheir valuation reaches fair value
1919
Qinsight’s InsightQinsight’s Insight
High at about14,200 Oct. ‘07
Ease offClose toPlunge
EaseOff
Plunge
EarlyRevival
Dow
05 06 07 08 09
2020
Leading IndicatorsLeading Indicators
Raise cash before “plunge”Raise cash before “plunge”
Begin re-investing in “early revival”Begin re-investing in “early revival”
Go to Go to www.qinsight.com/www.qinsight.com/
Read the free weekly advisoryRead the free weekly advisory
Subscribe if you find the weekly advisory Subscribe if you find the weekly advisory helpful and you want more.helpful and you want more.
2121
Risks of Buying Value StocksRisks of Buying Value Stocks
BankruptcyBankruptcy
Breakup of CompanyBreakup of Company
Sale of CompanySale of Company
Sale of Assets or Chunks of Company Sale of Assets or Chunks of Company while the company survives.while the company survives.
2222
BankruptcyBankruptcy
General Motors InvestorsGeneral Motors Investors– Common Shareholders are the last to eat at Common Shareholders are the last to eat at
the carcass. GM Common Stock went to zerothe carcass. GM Common Stock went to zero– Bond holders are among the first to eat at the Bond holders are among the first to eat at the
carcass. GM Bond holders recovered some carcass. GM Bond holders recovered some or all of their investment. or all of their investment.
NO More on GM… Now for NO More on GM… Now for GEGE
2323
Breakup or Sale of CompanyBreakup or Sale of Company
Generally sells at “premium to the market Generally sells at “premium to the market price”price”
Generally the shareholders get a piece (s) Generally the shareholders get a piece (s) of the buying company.of the buying company.
Risk is buying above the buy out priceRisk is buying above the buy out price
Reward is buying below the “premium Reward is buying below the “premium price”price”
2424
Company Sells Assets Company Sells Assets to Raise Cashto Raise Cash
For example Kodak and GEFor example Kodak and GE
Companies are in weak bargaining Companies are in weak bargaining positionposition
Companies often hold on for years at a Companies often hold on for years at a low price. low price.
See See “Comcast Advances in Deal For NBC”“Comcast Advances in Deal For NBC”
Why is GE selling NBC? Why is GE selling NBC?
2525
GE selling NBCGE selling NBC
About half of GE’s business comes from About half of GE’s business comes from GE Capital Services (commercial real GE Capital Services (commercial real estate) estate) – Big downtown office towers, etc.Big downtown office towers, etc.
Commercial real estate is undergoing Commercial real estate is undergoing financial problems as small businesses financial problems as small businesses collapsecollapse
GE needs the cashGE needs the cash
2626
Things to ConsiderThings to Consider
Cash Position of the CompanyCash Position of the Company
Does the company have liquid saleable Does the company have liquid saleable assets?assets?
Is it “Financially Strong Enough to Is it “Financially Strong Enough to Weather the Crisis?”Weather the Crisis?”
2727
Things to Think AboutThings to Think About
Get a higher return for more risk.Get a higher return for more risk.
Is the company cheap because of the Is the company cheap because of the general economy?general economy?
What controls the company’s destiny?What controls the company’s destiny?– The market?The market?– The government?The government?– International events?International events?
2828
Key QuestionsKey Questions
Are they still the gorilla in their market?Are they still the gorilla in their market?
Has their stock price hit the bottom and Has their stock price hit the bottom and bounced at all.bounced at all.
What would be your sell strategy if you What would be your sell strategy if you bought this company? If they get back to bought this company? If they get back to their high price, will they continue to grow, their high price, will they continue to grow, or will they flat line?or will they flat line?
2929
David Dreman’s RulesDavid Dreman’s Rules
From: CONTRARIAN INVESTMENT From: CONTRARIAN INVESTMENT STRATEGIES, The Next GenerationSTRATEGIES, The Next Generation
Rule 29: … Buy during a panicRule 29: … Buy during a panic
Rule 30: … Analyze reason for lower Rule 30: … Analyze reason for lower pricesprices– Were they the company’s own doing?Were they the company’s own doing?– Is the management still in place?Is the management still in place?
3030
Plan for the Next PanicPlan for the Next Panic
Condition yourselfCondition yourself– Emotional responseEmotional response– Over reactingOver reacting
Plan aheadPlan ahead– Have dollars to investHave dollars to invest– Understand how to identify value situationsUnderstand how to identify value situations– Allow situations to lead you to value stocks Allow situations to lead you to value stocks
Think: A panic… Great! Time to make $Think: A panic… Great! Time to make $
3131
3232
Psychological Barriers to Psychological Barriers to Thoughtful InvestingThoughtful Investing
OrOrHow to Avoid Going off the How to Avoid Going off the
Deep EndDeep End
Adapted from Contrarian Investment StrategiesBy David Dreman
3333
Common Reasons Common Reasons for Bad Decisionsfor Bad Decisions
Over ReactionOver Reaction
Pressure of ‘social reality’Pressure of ‘social reality’– The consensus of the groupThe consensus of the group
Group peer behaviorGroup peer behavior
Psychological pressuresPsychological pressures– Powerful under conditions of uncertaintyPowerful under conditions of uncertainty
Unrecognized cognitive biasUnrecognized cognitive bias
3434
Understand Them!Understand Them!
Understanding these pressures is the best Understanding these pressures is the best protection against stampeding with the protection against stampeding with the crowd, but easier said than done.crowd, but easier said than done.
3535
Cognitive BiasCognitive Bias
Limitations of Information-Processing Limitations of Information-Processing CapabilitiesCapabilities
Systemic Bias of Information-Processing Systemic Bias of Information-Processing ‘Shortcuts’‘Shortcuts’
3636
ShortcutsShortcuts
Shortcuts highly efficient and timesavingShortcuts highly efficient and timesaving– Swamped with informationSwamped with information– Can react only to part of itCan react only to part of it– We use rules of thumb to simplify handling avalanche We use rules of thumb to simplify handling avalanche
of dataof data
Shortcuts work systemically against us in the Shortcuts work systemically against us in the marketplace.marketplace.– Reach different conclusions than what we should.Reach different conclusions than what we should.– Produce distortions about true oddsProduce distortions about true odds
3737
Cognitive Bias: Cognitive Bias: RepresentativenessRepresentativeness
Draw analogies and see identical Draw analogies and see identical situations where none existsituations where none existGive too much emphasis to the similarities Give too much emphasis to the similarities of events or samplesof events or samplesGive too little emphasis to the probability Give too little emphasis to the probability they will occurthey will occurMay reduce the importance of variables May reduce the importance of variables that are critical in determining the event’s that are critical in determining the event’s probabilityprobability
3838
Dreman’s Rule toDreman’s Rule to Overcome Overcome trap oftrap of RepresentativenessRepresentativeness
Look beyond obvious similarities between Look beyond obvious similarities between a current investment situation and one that a current investment situation and one that appears equivalent in the past. appears equivalent in the past.
Consider other important factors that may Consider other important factors that may result in a markedly different outcomeresult in a markedly different outcome
3939
Cognitive BiasCognitive BiasLaw of Small NumbersLaw of Small Numbers
The smaller the sample used (or the The smaller the sample used (or the shorter the record), the more likely the shorter the record), the more likely the findings are chance rather than meaningfulfindings are chance rather than meaningful
We over-generalize the meaning of a We over-generalize the meaning of a small number of supporting factssmall number of supporting facts
Limited statistical evidence seems to Limited statistical evidence seems to satisfy our intuition no matter how satisfy our intuition no matter how inadequate the depiction of realityinadequate the depiction of reality
4040
Dreman’s Rules to Overcome the Law ofDreman’s Rules to Overcome the Law of
Small NumbersSmall Numbers
Don’t be influenced by the short-term Don’t be influenced by the short-term record of a money manager, broker, record of a money manager, broker, advisor or punditadvisor or punditDon’t accept cursory economic or Don’t accept cursory economic or investment news without significant investment news without significant substantiationsubstantiationDon’t rely solely on the detail of the Don’t rely solely on the detail of the present situation: take into account the present situation: take into account the known prior probabilities of profit and lossknown prior probabilities of profit and loss
4141
Cognitive Bias:Cognitive Bias:Ignoring the Regression to the MeanIgnoring the Regression to the Mean
Over the long run, things trend back to the Over the long run, things trend back to the average instead of becoming more average instead of becoming more extremeextreme
Prevalent belief is that extreme returns, Prevalent belief is that extreme returns, both good and bad, will persist. Actually, both good and bad, will persist. Actually, they are outliersthey are outliers
4242
Dreman’s Rule to Overcome TrapDreman’s Rule to Overcome Trap
Don’t be seduced by recent rates of return Don’t be seduced by recent rates of return for individual stocks or the market when for individual stocks or the market when they deviate sharply from past norms. they deviate sharply from past norms. Long-term returns of stocks are far more Long-term returns of stocks are far more likely to be established again. If returns likely to be established again. If returns are particularly high or low, they are likely are particularly high or low, they are likely to be abnormalto be abnormal
4343
Cognitive Bias: Cognitive Bias: Inputs and Outputs Inputs and Outputs
should be Closely Relatedshould be Closely Related
Demanding immediate success invariably Demanding immediate success invariably leads to playing fads or fashions currently leads to playing fads or fashions currently performing wellperforming well
Actually, the value (input) is often not Actually, the value (input) is often not recognized in the price (output) for quite recognized in the price (output) for quite some timesome time
4444
Dreman’s Rule to Dreman’s Rule to Overcome the TrapOvercome the Trap
Don’t expect a good strategy to prove a Don’t expect a good strategy to prove a quick success in the market; give it a quick success in the market; give it a reasonable time to work outreasonable time to work out
4545
Cognitive BiasCognitive BiasAvailabilityAvailability
A mental rule of thumb by which people assess A mental rule of thumb by which people assess the frequency or the probability of an event by the frequency or the probability of an event by the ease with which instances of occurrences the ease with which instances of occurrences can be brought to mind.can be brought to mind.Usually recall events more easily that have Usually recall events more easily that have occurred frequentlyoccurred frequentlyRecall can be distorted byRecall can be distorted by– RecencyRecency– Emotional chargeEmotional charge– Extremely good or bad characteristicExtremely good or bad characteristic
These distortions move judgment away from These distortions move judgment away from long-term probabilitieslong-term probabilities
4646
SummarySummary
Cognitive biases are locked more firmly Cognitive biases are locked more firmly into place by group pressuresinto place by group pressures
When our own biases are reinforced by When our own biases are reinforced by the powerful influence of experts and peer the powerful influence of experts and peer groups we respect (and who interpret groups we respect (and who interpret information in the same way we do), the information in the same way we do), the pressure to follow becomes compelling.pressure to follow becomes compelling.
4747
SummarySummary
We are too apt to look at insufficient We are too apt to look at insufficient information in order to confirm a course of information in order to confirm a course of actionactionWe are too inclined to put great emphasis We are too inclined to put great emphasis on recent or emotionally compelling eventson recent or emotionally compelling eventsWe expect our decisions to be met with We expect our decisions to be met with quick market confirmationquick market confirmationWe need protective rules against the tug We need protective rules against the tug of prevailing fashionof prevailing fashion
4848
4949
Will the Will the Company Survive?Company Survive?
Check the Check the
Financial StatementsFinancial Statements
5050
Will the Company Survive?Will the Company Survive?
Necessary Financial StrengthNecessary Financial Strength– Can they service their debt?Can they service their debt?– With Cash With Cash – Or by selling Marketable SecuritiesOr by selling Marketable Securities– Saleable AssetsSaleable Assets
Book Value (ultra conservative)Book Value (ultra conservative)
5151
Financial StatementsFinancial Statements
We offer a separate financial statements We offer a separate financial statements workshop.workshop.
A GE Financial Analysis will follow. The A GE Financial Analysis will follow. The conclusions of the GE financial analysis will be conclusions of the GE financial analysis will be shown, not the whys and hows.shown, not the whys and hows.
Go to Go to www.betterinvestingsandiego.org/resourceswww.betterinvestingsandiego.org/resources and and look for the article on financial statements look for the article on financial statements
5252
Why GE Why GE
BI Magazine, September, 2009; p 8BI Magazine, September, 2009; p 8
Club Accounting #1 most active @ 147 Club Accounting #1 most active @ 147 buys and 30 sellsbuys and 30 sells
Bivio #2 most active @ 131 buys and 43 Bivio #2 most active @ 131 buys and 43 sellssells
SSG looks matureSSG looks mature
Big price dip looks valueBig price dip looks value
5353
Cash Flow AnalysisCash Flow Analysis
Having Sales and Earnings does not Having Sales and Earnings does not equate to having cash.equate to having cash.
Always watch Cash Flow from Operating Always watch Cash Flow from Operating Activities.Activities.– This is the net amount of cash the company This is the net amount of cash the company
took in (not necessarily earned) during the took in (not necessarily earned) during the reporting period.reporting period.
– A business can’t continue to operate without A business can’t continue to operate without cash.cash.
5454
Cash Flow AnalysisCash Flow Analysis
A healthy company generates cash from A healthy company generates cash from its operationsits operations
Uses cash to make investmentsUses cash to make investments
Uses cash to pay shareholders, debt Uses cash to pay shareholders, debt holdersholders
Has enough cash left to operate the Has enough cash left to operate the business for the next periodbusiness for the next period
5555
Saleable AssetsSaleable Assetson Cash Flow Statementon Cash Flow Statement
Check Cash Flow from Investing ActivitiesCheck Cash Flow from Investing Activities
Example (GE)Example (GE)
GE is selling NBC to Comcast for “around GE is selling NBC to Comcast for “around $30 Billion”$30 Billion”
Go to Go to http://sec.gov/edgarhttp://sec.gov/edgar to see how long to see how long that might last GEthat might last GE– Go over detail of GE Cash Flow Statement Go over detail of GE Cash Flow Statement
5656
Start with the GE Start with the GE Cash Flow StatementCash Flow Statement
9 months ended 9 months ended
Sept. 30, 2009Sept. 30, 2009
5757
Summary of GE so far Summary of GE so far
Income STATEMENTIncome STATEMENT– Interest coverage = how many times PTP pays interestInterest coverage = how many times PTP pays interest– Interest coverage = $7.7B EBT + $14.3B net interest ÷ $14.3B Interest coverage = $7.7B EBT + $14.3B net interest ÷ $14.3B
net interest = 1.54net interest = 1.54– Acceptable interest coverage is > 4Acceptable interest coverage is > 4– GE failed the interest coverage test, so dig deeperGE failed the interest coverage test, so dig deeper
Balance Sheet Balance Sheet – $160 B due in “Short Term…” Debt$160 B due in “Short Term…” Debt– $358 B due long term$358 B due long term– Mostly debt of GECSMostly debt of GECS
Cash & Cash Equivalents = $61 BCash & Cash Equivalents = $61 B
5858
5959
Will GE Survive?Will GE Survive?
Managing DebtManaging Debt– Cash & Cash Equivalents Cash & Cash Equivalents – For Sale SecuritiesFor Sale Securities– Short Term Borrowings Short Term Borrowings
Saleable Assets, see Business SegmentsSaleable Assets, see Business Segments
6060
For Sale SecuritiesFor Sale Securities
$53 B
6161
Short Term BorrowingsShort Term Borrowings
Due within12 Months
6262
Saleable AssetsSaleable AssetsBusiness SegmentsBusiness Segments
$30 B
6363
Saleable AssetsSaleable AssetsBusiness SegmentsBusiness Segments
$30 B
$65B ?$75B ?
$90B ?$20B ?
6464
Let’s Add it up!Let’s Add it up!
GE needs $70B to $160 B to service debt in next GE needs $70B to $160 B to service debt in next 12+ months12+ months
Cash Flow Operations Est. > $15 BCash Flow Operations Est. > $15 B
Cash & Equivalents = $61 BCash & Equivalents = $61 B $ 76B$ 76B
Saleable Securities = $53 B Saleable Securities = $53 B $ 129B$ 129B
Sale of NBCUSale of NBCU = $24 B= $24 B $153B $153B– $6 B to Vivendi for its share of NBCU$6 B to Vivendi for its share of NBCU
Sale of rest of company = $250 BSale of rest of company = $250 B
6565
How How COULDCOULD GE Manage its debt? GE Manage its debt?
Assumes $ & debt is all accounted forAssumes $ & debt is all accounted forService current debt.Service current debt.– Pay interest and principle duePay interest and principle due
Pay off or roll short term borrowingsPay off or roll short term borrowings– Roll means to write a new loanRoll means to write a new loan
Reduce “net interest” by managing interest Reduce “net interest” by managing interest coverage upwardcoverage upward– Move ratio of PTP to net interest from 1.5 Move ratio of PTP to net interest from 1.5
ultimately to 4 or higherultimately to 4 or higher
6666
6767
More ConclusionsMore Conclusions
Leverage is not a good thing !Leverage is not a good thing !
Borrowing more money is costly or Borrowing more money is costly or impossible when they can’t service their impossible when they can’t service their debt from earningsdebt from earnings– Debt is a terrible thing to have in a financial Debt is a terrible thing to have in a financial
crisis.crisis.– Not well positioned to buy good dealsNot well positioned to buy good deals– Won’t have the cash to speed their recoveryWon’t have the cash to speed their recovery
6868
Speculation about the Speculation about the Financial AnalysisFinancial Analysis
GE will be a smaller company for a whileGE will be a smaller company for a while– May need to sell off more parts of GEMay need to sell off more parts of GE
GECS may be monetizing future GECS may be monetizing future commercial real estate receivables.commercial real estate receivables.– ““Do I have a deal for you! Pay me now and I’ll Do I have a deal for you! Pay me now and I’ll
give you a great bargain”give you a great bargain”
6969
7070
HomeworkHomework
Understand the calculation of GE Book PriceUnderstand the calculation of GE Book PriceLook at JPM and TEVALook at JPM and TEVA– Financial Statements attached to your notesFinancial Statements attached to your notes
JPM, a bank that took TARP $JPM, a bank that took TARP $TEVA, an Israili Pharmacuitical CompanyTEVA, an Israili Pharmacuitical Company– Growing salesGrowing sales– Somewhat flat earningsSomewhat flat earnings– Flat stock priceFlat stock price– Growing cash flow from operationsGrowing cash flow from operations
7777
When to Sell Crisis StocksWhen to Sell Crisis Stocks
When the crisis is over and the economy When the crisis is over and the economy has recovered.has recovered.
When the P/E reaches the average for the When the P/E reaches the average for the industry.industry.
Rule 21: Sell when P/E reaches that of Rule 21: Sell when P/E reaches that of the overall market, regardless of outlook.the overall market, regardless of outlook.
Rule 19: Buy mid to large cap companiesRule 19: Buy mid to large cap companies
Rule 15: Buy blue chipsRule 15: Buy blue chips
7878
Tell em what yu told emTell em what yu told em
We recommended Dreman’s book.We recommended Dreman’s book.
We’ve defined Value & Growth InvestingWe’ve defined Value & Growth Investing
Showed how to find the companiesShowed how to find the companies
Discussed the psychological barriersDiscussed the psychological barriers
Given examples of out of favor companiesGiven examples of out of favor companies– And how to use CF, Book Value and the SSG And how to use CF, Book Value and the SSG
to evaluate themto evaluate them
We discussed when to sell themWe discussed when to sell them
7979
Do you have Questions?Do you have Questions?
8080
Next BI EventNext BI Event
Mark your Calendars !Mark your Calendars !
February 4February 4thth, 2010, 2010
Thursday between 6:30 and 9:00 PMThursday between 6:30 and 9:00 PM
Right hereRight here
Club AccountingClub Accounting
Using Took Kit 6, The Stock Selection Using Took Kit 6, The Stock Selection GuideGuide