August 23, 2014

An Interesting Bit of Nostalgia from My Childhood …

Papa John's Stock Certificate

A pleasant bit of nostalgia today.  I was researching Papa John's and it reminded me of the last time I read the report.  I was in 7th grade in a small town called Savannah (again, most of you know I lived in seven or eight different places  before I finished middle school so it's sometimes necessary to clarify).  I was doing something for the student government association and was in the journalism room on the third floor.  We were there after school, the sun was starting to set, and the wind … [Read more...]

Our Value Investing Research Process for Stocks

Analyzing Sonic Restaurant Investment Reports Regarding Share Buy Backs

A week or two ago, I wrote an article called Understanding Stock Repurchase Plans for About.com, a division of The New York Times, which discussed Sonic Restaurant and the massive stock buy back program that had taken place over the past few years. In it, I walked the readers through a lot of the math and explained that I had purchased a couple hundred shares to watch and monitor the stock through one of my companies, Mount Olympus Awards, LLC.  (I've since increased it to about 500 shares to … [Read more...]

Peak Earnings – A Common Value Investing Trap

Toll Brothers Stock Chart - The Value Investing Trap

Peak earnings are a common value investing trap that most often hurts inexperienced investors who look only at the earnings per share and not the underlying driver of those profits.  The last big round of peak earnings value traps occurred at the end of the housing bubble.  By knowing what to look for, you'll be better equipped to spot value traps, lowering the chances your portfolio will be damaged by them. What Is the Peak Earnings Value Investing Trap? The peak earnings value investing tra … [Read more...]

Walter Schloss Value Investing Strategy

Walter Schloss, a legendary value investor who learned directly from Benjamin Graham, the father of value investing, never graduated from college and was hired as a runner on Wall Street in 1934, at the age of 18. Schloss enrolled in the New York Stock Exchange Institute, where he took courses from Benjamin Graham on how to value businesses, find value stocks, and manage money. Using the lessons he learned there, Schloss launched his own value investing fund in 1955, with a starting balance … [Read more...]

The Douwe Egberts Coffee Machine at Headquarters

The Douwe Egberts Cafitesse C60 coffee system machine allows us to brew coffee, cappuccino, espresso, and other beverages in a matter of seconds.  It was something I had wanted for years and when the original company became successful, it was brought in immediately.

One of the first things I did when my original company became successful was to order a Douwe Egberts coffee machine for the breakroom.  For the uninitiated, Douwe Egberts coffee is the best in the world.  There are no exceptions.  In fact, I was visiting someone in a town called Branson, Missouri several years ago and there was a restaurant that had the perfect cup of coffee.  The waitress took time to go in the back, write down the name of the machine, open it and find the precise blend of cof … [Read more...]