Warren Buffet, the father of modern value-based investing, has advised us, if you buy a stock, even only for one share, buy as if you want to acquire the whole company. Now, which one do you prefer, become the owner of Tesla, the market leader for EV and the next big thing (according to its fanboy) – or become the owner of the payment industry duopoly: Visa and Master Card? On 24 December, the Tesla market cap is at 627.3 M, slightly lower than the payment duo with a total of 688,9 M.Continue reading “Value-Based Investing: Tesla vs Payment Duopoly”
The stock market bubble unsurprisingly appears in 2020. Thanks to COVID-19 pandemics. Quoting Bloomberg Businessweek 23rd November 2020 edition, “This Market is for Noobs. Professional money managers aren’t beating the market1, The novice trader next door might be”. With smartphones in their hand, everyone is a stock market genius right now.Continue reading “Stock Market Bubble: Happy New Year, Genius”
- Actually, ever they?
Value investing evangelist, Warren Buffett ever revealed his investing secret: “The most important thing [is] trying to find a business with a wide and long-lasting moat around it. Protecting a terrific economic castle with an honest lord in charge of the castle.”
What is economic moat? Could Qualcomm wireless patent classified as economic moat? Disney raise its Disneyland ticket every year and Apple sell iPhone more and more expensive, do they show us economic moat?Continue reading “Value Investing 101: Economic Moat, Buffett No. 1 Criterion”
Charlie Munger has one single – simple, financial ratio for stock market analysis “It’s obvious that if a company generates high returns on capital (ROIC) and reinvests at high returns, it will do well. But this wouldn’t sell books..”. In this article we will discuss:
- How ROIC is equal with ROA (Return On Asset)
- Why not use ROE (Return on Equity) instead?
- In what case ROIC failed?
The weird acronym, FAAMG – which consists of the five largest companies by market cap (Facebook, Amazon, Apple, Microsoft, Google) – has an impressive return of 39% this year, leaving the 495 companies that rise only 6% in the dust. While those five have a great reputation as tech titan, investingdeck try to examine which is the most efficient in capital use.Continue reading “Clash of The Titans: Facebook, Amazon, Apple, Microsoft, Google – Which is The Most Capital Efficient?”
According to its latest 10-K, Apple is the largest Berkshire Hathaway investment in the stock market with an almost 50% portfolio. What if we try to use Warren Buffett’s prerequisite for examining his own stock picking? Here is Apple Stock valuation according to Oracle of OmahaContinue reading “Apple Stock Valuation: Quantifying Buffett 3 Criterion.”
This is how a firm repays a debt by issuing new debt – digging a hole, filling the hole practice. In May 2020, Qualcomm had to repay its 2 billion total debt, but instead of using its cash (almost 12 billion in 2019), The chipmaker issue a new debt note with the same amount to repay it. August 2020, Qualcomm issue another 2 billion to purchase its another old debt note.
Its balance sheet – 15.7 billion debt (both short and long term) vs 6.7 billion cash (and cash equivalent) – bold the firm’s dependence on debt. Do our dragon always hungry for resources? Do shareholders need to worry?Continue reading “Qualcomm Annual Report. What do We get?”
Let’s play the intro: we don’t like drug companies, and biopharmaceutical is no exception. Complicated and expensive R&D, patent off, strict regulation, and many other factors potentially inhibit firm growth. Yet, let us try what we find with Amgen (NASDAQ: AMGN).Continue reading “Stimulating Growth for Stimulant Maker. Amgen Income Statement Analysis”
The two most interesting items in Adobe Balance Sheet is its Goodwill portion and Debt level. As stated in the Q3 report, 50% of Adobe Total Asset is Goodwill – a nonproductive asset and has debt almost equal to its cash and cash equivalent. At a glance, we aren’t impressed, but let’s go on.Continue reading “Illustrator of Balance Sheet. Adobe Case”