<![CDATA[Main Street Value Investor™ - MSVI Blog]]>Sat, 21 Oct 2017 09:58:23 -0400Weebly<![CDATA[Retail Model Throws Wet Blanket Over Bed Bath & Beyond's Sizable Margin Of Safety]]>Tue, 17 Oct 2017 04:00:00 GMThttp://davidjwaldron.com/blog/retail-model-throws-wet-blanket-over-bed-bath-beyonds-sizable-margin-of-safetyAbout Bed Bath & Beyond

Summary
  • Bed Bath & Beyond lacks an economic moat to guarantee the protection of competitive advantages developed over its 46-year existence.
  • The company’s stock repurchase program since 2014 is perhaps a case study in how not to seek value in the stock market.
  • But fundamentally, it is difficult to argue the time-tested merchandising prowess of this specialty retailer.
  • As contrarians, we are intrigued by the market's overwhelmingly bearish view on the stock.
  • Nonetheless, does the proverbial crystal ball project the promise of digital commerce or the burdens of big box retail?
Bed Bath & Beyond (NASDAQ:BBBY) is down over 50% from its 52-week high of $48.83, seemingly from lower comparable store sales that have put pressure on its e-commerce or what its management refers to as “customer facing digital channels.”

According to Chief Executive Officer Steven Temares, online sales represent only 15 percent of Bed Bath & Beyond's current revenues, suggesting there is still room for significant growth. However, the company leases substantially all of its existing stores, eliminating any quasi-real estate investment trust valuation to the BBBY equation. To the contrary, the company's warehouse space - in support of its customer-facing digital channels - represents a cost-effective 16% of the store space.

Thus, the market is debating whether BBBY is a value play opportunity as it transitions to digital sales or a value trap dinosaur from the retail big box-dominated late twentieth century.

​We think the company's sound fundamentals and a sizable margin of safety may outweigh the overwhelmingly bearish market consensus.

​Initially suggested by a member of MSVI on Marketplace, here is Main Street Value Investor's (MSVI) flagship research on Bed Bath & Beyond.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Coca-Cola Brand And Dividend Soak Up Syrupy Capital Gains]]>Thu, 12 Oct 2017 04:00:00 GMThttp://davidjwaldron.com/blog/coca-cola-brand-and-dividend-soak-up-syrupy-capital-gainsAbout The Coca-Cola Company

Summary
  • Coca-Cola's stock performs like an equity bond, i.e., a stagnant market price to an attractive inverse dividend yield.
  • The company unapologetically pays out close to 150% of adjusted earnings in shareholder dividends to counter slow growth and a market shy stock price.
  • Further flattening the fizz, the stock is trading at lofty valuation levels.
  • But its ubiquitous global brand and growing dividend keep the stock as one of the top defensive core holdings against this historic bull market.
​Coca-Cola (KO) is perpetually overpriced because it has become more or less a commoditized stock dependent on brand equity and dividend sustainability.

For better or worse, the company and its stock carry an asymmetric growth opportunity countered by limited downside risk. The jury is still out on new chief executive James Quincey but how far can any CEO move the needle at 1 Coca-Cola Plaza?

Thus, Main Street Value Investor’s margin of safety rating for Coke is bearishon new investment.

In our view, KO continues as a multi-year play for current shareholders mostly because of its predictable dividend. However, the price is perhaps too lofty to buy or add at this point and likewise too safe to sell in this extra innings bear market.

​Here’s our updated research on one of the top five most recognizable global brands.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Keeping Portfolio Costs Low Goes Beyond Fees And Commissions]]>Tue, 01 Aug 2017 04:00:00 GMThttp://davidjwaldron.com/blog/keeping-portfolio-costs-low-goes-beyond-fees-and-commissions
Summary
  • Advisory fees and broker commissions are typically the primary targets when addressing the costs of managing a self-directed investment portfolio.
  • Keeping fees and commissions well below 1% are paramount to a cost-effective investment portfolio.
  • But Main Street Value Investor gauges at least five other significant threats to a portfolio’s total return.

The churning of fees and commissions is the Wall Street way to a beach house in the Hamptons. How about returns on capital invested? That is certainly an added benefit of the financial elite's output when it occurs.

​However, the individual investor on Main Street must be wary of a myriad of other portfolio expenses that eat away at total returns.

Regardless of level, whether professional or personal, investing full-time, part-time, or in your spare time, all investors should focus on keeping portfolio costs as low as possible.

As defensive investors, we have developed a model to measure the real costs of managing and sustaining a profitable investment portfolio.

​Here is Main Street Value Investor's primer on keeping portfolio costs as low as possible. Surprisingly, it involves more than just pursuing reasonable advisory fees or discount brokerage commissions.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)

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<![CDATA[IBM The Hard Way]]>Wed, 26 Jul 2017 04:00:00 GMThttp://davidjwaldron.com/blog/ibm-the-hard-wayAbout International Business Machines

Summary
  • We are not as concerned as Mr. Market that revenues at International Business Machines have declined for 21 consecutive quarters or that the company missed analysts’ top-line estimates.
  • IBM’s yields are superior to bonds and perhaps safer than most high dividend stocks.
  • But pundits are begging for changes at the top in Armonk.
  • We suggest shedding Big Blue's underperforming legacy businesses, not the CEO.

​​(Note: subscribers to Main Street Value Investor Marketplace received the first look at this research).

Following International Business Machines (IBM) 21st consecutive quarter of declining year over year revenues per its Q2 FY2017 earnings release on Tuesday, July 18, 2017, my fellow Seeking Alpha contributors have posted no less than 20 articles in reaction to this seemingly endless story.

​During a week of multiple forensic financial autopsies, I could almost envision the approximately 270,000 real-time followers of IBM on SA scrambling in a myriad of directions, taking new or renewed stands on the company and its stock. Whether bullish, bearish, or the safer and secure neutral, right now IBM is all over the investment theses map.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[McKesson: Compelling Margin Of Safety Outweighs Newsworthy Risks]]>Fri, 14 Jul 2017 16:31:25 GMThttp://davidjwaldron.com/blog/mckesson-compelling-margin-of-safety-outweighs-newsworthy-risksAbout McKesson

Summary
  • A frugal dividend tempers McKesson Corporation's abundant earnings yield.
  • Nonetheless, the company is the arguable leader of the health care distributor oligopoly in both fundamentals and valuation.
  • McKesson's downside risks are newsworthy.
  • But the stock’s compelling margin of safety appears protected by the company's enduring delivery of compounding annual growth.

​(Note: subscribers to 
Main Street Value Investor Marketplace received the first look at this research).

Macroeconomic downside risks stemming from exorbitant CEO pay, the opioid crisis, pending healthcare reform, and evolving reinvention of retail pharmacy delivery models are newsworthy topics for McKesson Corporation (MCK).

However, as overpaid executives and other stock price thrashing issues come to fruition, the stocks of companies that are quality capital allocators such as McKesson, temporarily go on sale without compromising the recurrent delivery of compounding annual growth.

​Thus, we believe MCK is perhaps a compelling asymmetric value play, rare in today’s secular bull market.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Toyota - The Best Company In The Auto Space]]>Sun, 09 Jul 2017 16:01:27 GMThttp://davidjwaldron.com/blog/toyota-the-best-company-in-the-auto-space​About Toyota Motor

Summary
  • Toyota Motor offers an attractive earnings yield and growing dividend.
  • The automaker exhibits a high margin of safety in a low capital return industry.
  • Toyota is arguably the most expensive stock in the now cheap automaker space.
  • But we prefer to own the best company in a sector as opposed to trading the whole basket.

(Note: Subscribers to Main Street Value Investor Marketplace received the first look at this research).

Toyota Motor Corporation (NYSE:TM) is the world’s eighth-largest company by sales based on 2016 consolidated revenues per the Fortune Global 500. Interestingly, Toyota is tailgating seventh-ranked and fellow automaker, Volkswagen (OTCPK:VLKAY), by a slim $8 million of revenue.

​Although TM’s valuation appears discounted to the market on the whole, the stock’s multiples are a bit loftier than its automaker peers. In our view, Toyota is the best-in-class automaker, and thus justifies the premium.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[As the Wealthy Get Wealthier, So May Wal-Mart's Investors]]>Wed, 28 Jun 2017 16:42:43 GMThttp://davidjwaldron.com/blog/as-the-wealthy-get-wealthier-so-may-wal-marts-investorsAbout Wal-Mart and Amazon

Summary
  • Amazon’s bid for Whole Foods Market, aka “whole paycheck,” suggests the e-commerce giant has an affinity for affluent consumers.
  • But Wal-Mart as the traditional brick and mortar disruptor has successfully catered to everyone else for decades.
  • We think Wal-Mart’s new and aggressive move into e-commerce will reward its shareholders, including non-Walton family investors, for decades to come.

(Note: Subscribers to Main Street Value Investor Marketplace received the first look at this research.)

​Wal-Mart Stores, Inc. (WMT) was back on the value radar after Amazon’s (AMZN) disruptive announcement that it was acquiring Whole Foods Market (WFM). Predictably, financial newsmakers became speculative by suggesting that Wal-Mart, as the experienced discount grocer, should step in and bid for the higher-end Whole Foods.
Continuing reading article  here  exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Unilever: Kraft Heinz Failed At Buying The Whole Pie, But We Can Own A Slice]]>Tue, 20 Jun 2017 16:25:25 GMThttp://davidjwaldron.com/blog/unilever-kraft-heinz-failed-at-buying-the-whole-pie-but-we-can-own-a-sliceAbout Unilever

Summary
  • Unilever NV delivers modest earnings and dividend yields typical of a consumer staple.
  • But the company is a well-managed producer of recognizable global consumer brands.
  • The Kraft Heinz failed merger bid with Unilever last February pales in comparison to Amazon’s pending acquisition of Whole Foods Market.
  • As apparently did Kraft Heinz, we regard Unilever as a fundamentally sound company whose stock trades at a reasonable margin of safety due to a low-risk profile.

​(Subscribers to the 
Main Street Value Investor Marketplace received the first look at this research).

Unilever NV (NYSE:UN) is up over 35% from its January 2017 low before the Kraft Heinz Company (NASDAQ:KHC) bid for the European-based consumer packaged goods producer and Unilever’s subsequent rejection became public.

Despite the failed takeover, the event was another reminder that when Warren Buffett and Charlie Munger get involved, value is often unlocked. Buffett's and Munger’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) owns over 25% of KHC shares outstanding.

​In our flagship research article on UN, we suggest that Unilever and its diversified product mix of food, personal, and household goods is a compelling choice as a core consumer staples holding of a long-view investor’s portfolio.

Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Corning: A Walk Through The Looking Glass]]>Tue, 13 Jun 2017 04:00:00 GMThttp://davidjwaldron.com/blog/corning-a-walk-through-the-looking-glassAbout Corning, Inc.

Summary

  • Corning has the highest earnings yield and cash flow margin and the most attractive market valuation on the Main Street 20 Watchlist.
  • The company’s glass and ceramic products offer cutting edge support to consumer electronics, tech, telecom, automotive, and healthcare.
  • Nevertheless, Corning's range bound stock price reminds us of a football team that is leading in half-time statistics but losing the game.
  • In this secular bull market, is a wonderful company trading at a cheap price too good to be true?
(Subscribers to the MSVI Marketplace received the first look at this research.)

One can argue that display glass on a television, monitor, tablet, or smartphone is a looking glass, i.e., the mirror of the user looking back at him or her by way of a myriad of programs, software, and apps that define his or her life, both personal and professional. That virtual mirror, so to speak, is often courtesy of Corning (NYSE:GLW), a leading manufacturer of specialty glass and ceramics.
​Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Nike: The Swoosh Is The Moat]]>Tue, 06 Jun 2017 18:41:53 GMThttp://davidjwaldron.com/blog/nike-the-swoosh-is-the-moatAbout Nike

Summary
  • Nike is a dividend paying, stock splitting athlete of a company.
  • The company is a global brand powerhouse despite challenges in foreign exchange and customer collateral.
  • CEO Parker is the Tim Cook of athletic footwear and apparel or vice versa.
  • The ubiquitous Swoosh was a classic value play; the current stock price not so much.

​Welcome to the 20th installment of the "Main Street Value Investor (MSVI)" series, the Swoosh edition, exclusively on Seeking Alpha (subscribers to the MSVI Marketplace received the first look at this research).
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Marketplace Roundtable: A Walk Down Main Street]]>Thu, 25 May 2017 20:11:54 GMThttp://davidjwaldron.com/blog/marketplace-roundtable-a-walk-down-main-streetAbout 3M Company. Includes Amazon, Apple, IBM, Microsoft

Summary

  • David J. Waldron explains how the Main Street Value Investor helps investors do it themselves while still incorporating the lessons of John Bogle and passive investing.
  • Waldron discusses the simple criteria - earnings quality, balance sheet liquidity - that guide his approach.
  • And despite a value bent, he explains how his favorite stock stood out because of its momentum in a tough time in the market.

​The quants are coming, and where the quants haven't gone, the ETFs have already arrived. So goes the drumbeat of market chatter - just like malls are dying and cars will be self-driving soon enough, so will stock pickers suffer from robot competition.

At least, that is the narrative. But of course, Seeking Alpha is a site dedicated to finding ways to stay ahead of the market, so it's no surprise to find readers and contributors who disagree with that narrative.

David J. Waldron finds a middle ground between passive and active. Author of Main Street Value Investor, he talks about how he has found a way around fees while still pursuing improved returns on his own. He shares his version of K.I.S.S. as well as his vision of the self-driving portfolio, and how that will lead to the next step in value investing.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[This Off-Price Retailer Is The Antithesis Of Amazon]]>Tue, 23 May 2017 21:59:05 GMThttp://davidjwaldron.com/blog/this-off-price-retailer-is-the-antithesis-of-amazonAbout The TJX Companies. Includes Amazon.

Summary

  • The TJX Companies, Inc. is the leading off-price specialty retailer of apparel and home fashions in the U.S. and worldwide.
  • This well-managed company is ranked second for margin of safety on the Main Street 20 Watchlist.
  • But the retailer generated just 1% of revenues from online sales in fiscal 2017.
  • Shouldn’t we buy Amazon instead and be done with it?

Welcome to the 19th installment of the "Main Street Value Investor (MSVI)" series, the off-price retail edition, exclusively on Seeking Alpha (subscribers to the MSVI Member Forum got the first look at this research).
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Apple's Emotional Bears Outwitted By Rational Bulls]]>Tue, 16 May 2017 04:00:00 GMThttp://davidjwaldron.com/blog/inside-main-street-apples-emotional-bears-outwitted-by-rational-bullsAbout Apple, Becton Dickinson, Delta Air Lines, IBM, Johnson & Johnson, Coca-Cola, 3M.
Summary
  • Becton Dickinson's new public offerings to finance Bard acquisition remind us why we are bearish on the stock.
  • Delta's narrow moat is not diluting returns to shareholders.
  • Was Warren Buffett right when he bought IBM, when he sold, or both?
  • Coca-Cola's new CEO did a Brexit, speaks Spanish, and drives a Tesla.
  • 3M is an overvalued powerhouse.

Members of Main Street Value Investor Premium Forum received the first look at this commentary in a series of research notes.​
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[The Cheese Keeps Moving At Disney]]>Fri, 12 May 2017 18:52:41 GMThttp://davidjwaldron.com/blog/the-cheese-keeps-moving-at-disneyAbout The Walt Disney Company

Summary
  • Results are in from The Walt Disney Company's second quarter 2017 and the traders are not pleased as the stock drops over 2%.
  • ESPN's SportsCenter is perhaps following the fate of the once mighty Headline News cable channel.
  • But Disney's Studio Entertainment and Parks and Resorts segments continue to thrill customers and investors.
  • We remain bullish owners as the mouse that built the house savors the adventure and enjoys the taste of new cheese at this perennial king of content.

Subscribers to Main Street Value Investor Member Forum received the first look at a summary of this commentary in a research note.
​Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Johnson & Johnson: Own This Fairly Priced Stock Of Vulnerable Healthcare Products Managed By Happy Employees]]>Mon, 08 May 2017 04:00:00 GMThttp://davidjwaldron.com/blog/johnson-johnson-own-this-fairly-priced-stock-of-vulnerable-healthcare-products-managed-by-happy-employeesAbout Johnson & Johnson

Summary
  • Johnson & Johnson is a holding company of enduring healthcare products produced and sold by happy employees.
  • The company’s leadership team - portfolio managers per se - are delivering outstanding returns to shareholders by way of a stock that is neither overpriced nor underpriced.
  • J&J presently carries the highest margin of safety rating on the Main Street 20 Watchlist.
  • But the stock's dividend aristocracy may be threatened by liability claims against some of the company’s products.

​Welcome to the 15th installment of the Main Street Value Investor (MSVI) series, the happy people edition, exclusively on Seeking Alpha (Subscribers to MSVI Member Forum got the first look at this research).
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Earnings Season Forecast: Cloudy With A Chance Of Autonomous Vehicles]]>Thu, 20 Apr 2017 19:50:32 GMThttp://davidjwaldron.com/blog/earnings-season-forecast-cloudy-with-a-chance-of-autonomous-vehiclesAbout Main Street Value Investor Model Portfolio

Summary
  • Apple wants you to stop pricking your finger and driving your car.
  • Delta expects these two sectors to increase travel this year.
  • Disney is the new favorite company of the M&A rumor mill.
  • Coke takes a swing at Pepsi.
  • 3M holds competitors to one of the Ten Commandments.

Welcome to the inaugural post of Inside Main Street providing opinion and analysis on the latest news, earnings, and events of the companies and funds of the Main Street Value Investor Model Portfolio & Watchlist (MSVI). Subscribers to MSVI Member Forum in the SA Marketplace got the first look at this commentary.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[The Future Of Exxon Mobil Is Oil & Gas Futures]]>Mon, 17 Apr 2017 15:00:55 GMThttp://davidjwaldron.com/blog/the-future-of-exxon-mobil-is-oil-gas-futuresAbout Exxon Mobil Corporation

Summary
  • Call us late to the party, but crude oil prices and Exxon Mobil's revenue, earnings, and stock price are seemingly interdependent.
  • The company’s generous 159% dividend payout is perhaps a smoke screen of this apparently interconnected market pricing reality.
  • Thus, in the quest to never lose money, we plan to sell our core holding in Exxon when the stock price climbs to our basis, presuming energy prices cooperate.

Welcome to the fourteenth installment of the Main Street Value Investor series, the yin-yang edition, exclusively on Seeking Alpha.
​Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Union Pacific Railroad: Border Adjustment Tariffs May Create Value Opportunity]]>Wed, 22 Mar 2017 17:49:13 GMThttp://davidjwaldron.com/blog/union-pacific-railroad-border-adjustment-tariffs-may-create-value-opportunityAbout Union Pacific Corporation

Summary
  • Union Pacific Corporation has rewarded shareholders, including the Value Investing for Main Street Model Portfolio, with a 166% capital gain plus increasing dividends since August 2010.
  • The railroad operates with a mostly unionized workforce amidst a predominantly at-will American workplace.
  • Proposed border adjustment tariffs from protectionists will get the railroad shorts armed and ready.
  • But we think international trade deconstruction may create a buying opportunity for this cash-generating, dividend-paying core portfolio holding.

Welcome to the twelfth installment of the Value Investing for Main Street series, the fair trade edition, exclusively on Seeking Alpha.
​Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Long Apple Remains A Good Idea]]>Wed, 08 Mar 2017 05:00:00 GMThttp://davidjwaldron.com/blog/long-apple-remains-a-good-ideaAbout Apple, Inc.

Summary
  • Carl Icahn’s infamous "no-brainer" bullish sentiment on Apple remains relevant; his sold-out position over China concerns notwithstanding.
  • The growing army of his detractors aside, Warren Buffett’s recent surprise entry on to the Infinite Loop has our attention as well.
  • Despite our contrarian approach to investing, we think Apple is the rare long-term investment opportunity where the current market consensus may be right.

Welcome to the eleventh installment of the Value Investing for Main Street series, the Apple edition, exclusively on Seeking Alpha.
​Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Becton, Dickinson and Company: Non-Cyclical Revenues May Not Support Cyclical Stock Price]]>Mon, 27 Feb 2017 20:54:43 GMThttp://davidjwaldron.com/blog/becton-dickinson-and-company-non-cyclical-revenues-may-not-support-cyclical-stock-priceAbout: Becton, Dickinson and Co.

Summary
  • Becton Dickinson, a leading global supplier of non-cyclical healthcare products, enjoys extraordinary double-digit revenue growth for a large cap stock.
  • The Value Investing for Main Street Model Portfolio has owned the stock since January 2009, after passing on Johnson & Johnson, enjoying a 160% cumulative capital gain plus dividends.
  • However, our current view of questionable management transparency, low returns on capital, fragile liquidity, and inflated valuations suggest the stock is now as expensive as our health insurance.
  • We argue why it may be time to take profits by selling or reducing to hedge against a steep price correction from the eternally short-sighted Mr. Market.
  • Hence, Johnson & Johnson and its enduring margin of safety is back on our screen.

​Welcome to the tenth installment of the Value Investing for Main Street series, the healthcare edition, exclusively on Seeking Alpha.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[Delta Air Lines: Fly Me To The Moon]]>Fri, 10 Feb 2017 18:52:08 GMThttp://davidjwaldron.com/blog/delta-air-lines-fly-me-to-the-moonAbout: Delta Air Lines

​Summary
  • As are legacy airline stocks in general, Delta Air Lines appears discounted to the overall market.
  • Attractive valuation metrics echo a great buying opportunity, but capital-intensive airlines are notoriously risky investments.
  • Nationalism and protectionism in the near term aside, globalization and its inherent demand for air travel will indeed prevail in the long run.
  • But the question begs is Delta a fair company at a wonderful price or a wonderful company at a fair price?

​Welcome to the ninth installment of the Value Investing for Main Street series, the watchlist edition, exclusively on Seeking Alpha.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[The Voting Machine Weighs In on IBM]]>Mon, 23 Jan 2017 17:05:27 GMThttp://davidjwaldron.com/blog/the-voting-machine-weighs-inAbout: International Business Machines

Summary
  • As widely reported, International Business Machines' Q4 2016 earnings beat Wall Street analyst consensus estimates.
  • In customary fashion, the voting machine initially drove the stock lower after hours in reaction to 19 consecutive quarters of decreasing revenues.
  • Conversely, the weighing machine suggests a return to growth with promising cognitive solutions and cloud platform services.
  • We believe investor patience will be rewarded from these increasingly attractive fundamentals supported by the momentum of a 100-year dividend.​

Welcome to the eighth installment of the Value Investing for Main Street series, the earnings edition, exclusively on Seeking Alpha.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[This Wonderful Company Sits in the Nosebleed Section of the S&P 500 Arena]]>Thu, 12 Jan 2017 05:00:00 GMThttp://davidjwaldron.com/blog/this-wonderful-company-sits-in-the-nosebleed-section-of-the-sp-500-arenaAbout: Microsoft Corporation (MSFT)

Summary
  • Microsoft co-founder and the world’s richest person, Bill Gates, shares his good fortune philanthropically, and the company emulates his generosity with shareholders.
  • The Value Investing for Main Street Model Portfolio (VIMS) has owned a position in this technology powerhouse since June 2011 at an average price of $25.60 per share.
  • Sunk cost fallacy notwithstanding, the 59% discount to the stock’s current price is a humbling lesson in buying wonderful companies at bargain prices.
  • But current valuation has the stock sitting in the nosebleed section of the S&P 500.

Welcome to the seventh installment of the Value Investing for Main Street series, exclusively on Seeking Alpha.
Continuing reading article here exclusive to Seeking Alpha (free, email registration required.)
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<![CDATA[International Business Machines Corporation: We Were About to Leave; Then Warren Stopped By]]>Tue, 11 Oct 2016 04:00:00 GMThttp://davidjwaldron.com/blog/international-business-machines-corporation-we-were-about-to-leave-then-warren-stopped-byAbout: International Business Machines Corporation (IBM)

Summary
  • The Value Investing for Main Street Model Portfolio has owned IBM at a discount since 2009.
  • In 2011, we were about to leave the stock after the company started missing revenue targets.
  • Then Warren Buffett stopped by with his infamous 64 million share purchase.
  • Despite its oft-publicized issues, we now view IBM as a classic “buy low, hold high, sell when you die” investment.

​Welcome to the sixth installment of the Value Investing for Main Street series, exclusively on Seeking Alpha.
Continuing reading article here exclusive to Seeking Alpha (free, registration required.)
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<![CDATA[The Walt Disney Company: Buy and Forever King of Content Welcomes 360,000 Potential New Customers Every Day]]>Wed, 07 Sep 2016 04:00:00 GMThttp://davidjwaldron.com/blog/the-walt-disney-company-buy-and-forever-king-of-content-welcomes-360000-potential-new-customers-every-dayAbout: The Walt Disney Company (DIS), includes: VCR

​Summary
  • The Walt Disney Company is a perennial master at producing creative content enjoyed by millions.
  • 360,000 potential new customers are born every day, worldwide.
  • Despite an arguably expensive bull market, Disney's stock is down 20% from its 52-week high and exhibiting increasingly attractive valuation metrics.
  • The Value Investing for Main Street Model Portfolio has owned Disney since 2009 for a nearly 300% capital return plus dividends.
  • The time may be nearing to add to our position in this “buy and forever” king of media content and global branding.

​Welcome to the fifth installment of the Value Investing for Main Street series, exclusively on Seeking Alpha.
Continuing reading article here exclusive to Seeking Alpha (free, registration required.)
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