The Valuentum Learning Center

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At Valuentum, we believe in the ongoing education and development of our employees, members and visitors. Lifelong learning is something our company holds very dear, as part of our corporate mission is to serve the needs of investors of all types. Having trained and mentored over one hundred equity and credit analysts at such large research firms as Morningstar, President of Equity Research & ETF Analysis Brian Nelson has dedicated a large portion of his career to helping others achieve their professional aspirations and investing goals. This dedication to investment education has continued at Valuentum.

President Brian Nelson’s Letter to Members

Hi folks,

You may have read many stories of others that learned of stock investing at a really young age, perhaps they bought their first stock before their 10th birthday or their parents had been a part of the finance industry. This wasn’t me. I would probably describe myself as a late bloomer. I first became interested in the stock market probably in grade school, with a stock market game we played in either 3rd or 4th grade, and then my interest grew in high school. When I first enrolled in undergraduate studies, however, I actually had plans to major in biology and become a doctor. It wasn’t until a week or so into classes where I made the switch to finance. I haven’t looked back since.

My professional journey in finance started in the aggressive-growth money-management industry, where I learned to “live” the markets. From my 5am morning coffee and crisp Wall Street Journal to anticipating firms “breaking out” in the early afternoon, little did I know that my buy-side experience at Driehaus Capital Management was preparing me for this Valuentum journey. After earning an MBA from the University of Chicago Booth School of Business and the Chartered Financial Analyst designation, I then pursued the great satisfaction of helping others achieve their dreams.

In my role as Director of Global Equity and Credit Research (Training and Methodology) at Morningstar, one of the largest independent research companies in the world, I dedicated my time to training and mentoring stock and credit analysts on the intricacies of discounted cash-flow and competitive-advantage analysis. Many of these colleagues are now the heads of department at the company. At Morningstar, I truly learned to “live” valuation and competitive analysis in ways others may never come to know.

In early 2011, I realized what my experience at Driehaus and Morningstar may have been all about, my life’s calling: Valuentum Securities. It dawned on me that very few investors have ever had the opportunity to use technical and momentum indicators in a money-management setting and also build an extensive discounted cash-flow valuation infrastructure and methodology for one of the largest independent research firms in the world. Though I didn’t know what to expect, I knew what I had to do: share with others the tremendous benefits of Valuentum investing – the combination of two investment frameworks seemingly in complete opposition within stocks: value and momentum (but also everything in between). Most academic research views value and momentum generally in a portfolio setting, but not within the same stock like we do. I am honored to introduce you to the Valuentum Style of Investing.

Though part of the mission at Valuentum is to help readers better understand the movement of security prices via Valuentum Buying Index ratings, please don’t forget about the many other features of our website, not the least of which is the Dividend Cushion ratio and our forward-looking dividend analysis as well as fair value estimates/ranges and the Economic Castle rating (which can accompany economic moat assessments). We think we created one of the most helpful tools with respect to forward-looking dividend analysis in the Dividend Cushion ratio, one that combines an evaluation of both the balance sheet and cash flow statement into one meaningful number. Most importantly, please enjoy what we have to offer at Valuentum. Whether it’s our valuation work and the fair value estimates or the Dividend Cushion ratios or something else you like the most about our work, I’m glad you are here!

Yours truly,

Brian Nelson, CFA

Valuentum Methodology Papers

Study: Best Ideas Newsletter Portfolio (pdf), Tatiana Dmitrieva, Kris Rosemann and Brian Nelson, CFA

Value and Momentum Within Stocks, Too (2017), Brian Nelson, CFA

How Well Do Enterprise Cash Flow Derived Fair Values Predict Stock Prices (2017), Brian Nelson, CFA

Why Valuentum Buying Index Ratings Matter (2014), Brian Nelson, CFA

The Valuentum Buying Index (2011), Brian Nelson, CFA

The Case for the Valuentum Style of Investing (2012), Brian Nelson, CFA

Investing’s Odd Couple: Value and Momentum (pdf), AAII

The Seven Most Important Considerations of the Valuentum Buying Index, Brian Nelson, CFA

The 16 Most Important Steps to Understand the Stock Market, Brian Nelson, CFA