AJG

Podcast: Why ETFs and Roasting the Banks

by

The Valuentum analyst team talks about why we don’t like the business models of banking entities, why they are currently destroying economic value, but also why the team includes exposure in the Best Ideas Newsletter portfolio. What gives? Find out in this ~9 minute podcast. If you cannot view the video, please view the transcript that follows. Tickerized for holdings in the exchange traded funds, XLF and KBE, and for various financials-oriented ETFs.  Kris Rosemann: Hello and welcome to the Valuentum Securities podcast. My name is Kris Rosemann Associate Investment Analyst at Valuentum. With me is Chris Araos and Brian Nelson President of Equity Research and ETF Analysis at Valuentum. Today, we are going to have a quick discussion over … Read more

Part III: Nelson’s Evaluation of Berkshire’s 2015 Annual Report

by

<< Go back to Part I << Go back to Part II By Brian Nelson, CFA It’s always a wonder to open up on the Berkshire Hathaway (BRK.A, BRK.B) annual report for a large variety of different reasons, but every time I do I can’t help but ponder yesteryear through the table on page 2, “Berkshire’s Performance vs. the S&P 500.” I think I have a unique knack for imagining what might have been if today’s standards would have been applied to Berkshire in the 1970s, perhaps in some ways how many baseball fans may think about whether the legends of the past would have put up the type of numbers that they did if presented with today’s dynamics. For … Read more

Dividend Increases/Decreases for the Week Ending January 30

by

Let’s take a look at dividend increases/decreases for the week ending January 30.

Valuentum Economic Castleâ„¢ Rating Update

by

Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

AIG Still Trades at a Meaningful Discount to Book Value

by

On October 31, AIG (AIG) reported third-quarter net income of $2.17 billion and diluted earnings per share of $1.46, compared to $1.9 billion and $1.13 per share in the same period a year ago. Pre-tax income in the firm’s insurance operations were solid during the quarter, with ‘AIG Property Casualty’ and ‘AIG Life and Retirement’ advancing 33% and 38%, respectively, from the same period a year ago. Third-quarter after-tax operating income attributable to AIG came in at $1.42 billion, or $0.96 per share, compared to $1.62 billion, or $0.99, in last year’s quarter. Net income exceeded after-tax operating income as a result of valuation allowance releases associated with deferred tax assets (a non-core boost). Image Source: AIG Though we would … Read more

Raising Our Fair Value Estimate on Berkshire Hathaway, Our Thoughts on the Insurance Industry

by

Image Source: AIG Competitive Structure of the Insurance Industry Constituents in the insurance industry earn revenues primarily from insurance premiums, policy fees from life insurance/investment products, and income from investments. Operating expenses consist of policyholder benefits and claims incurred, interest credited to policyholders, commissions and other costs of servicing products, as well as general business expenses. An insurer’s profitability is dependent on its ability to price and manage risk on insurance and annuity products, to manage its portfolio of investments effectively, and to control costs through expense discipline. The insurance industry is highly competitive, with rivals numbering in the thousands–including stock companies, specialty insurance organizations, life insurers, mutual companies, other underwriting firms, and banks. Though risk-acceptance criteria, product pricing, and … Read more

Nelson: The 16 Most Important Steps To Understand The Stock Market

by

A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more

How to Think About Corporate Tax Reform

by

Dividend Increases/Decreases for the Week of January 26

by

Below we provide a list of firms that raised their dividends during the week ending January 26. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          Acerinox, S.A. (ANIOY): now $0.1219 per share semi-annual dividend, was $0.1159. Acuity Brands (AYI): now $0.15 per share quarterly dividend, was $0.13. ADT (ADT): now $0.055 per share quarterly dividend, was $0.035. Air Products and Chemicals (APD): now $1.77 per share quarterly dividend, was $1.75. ALLETE (ALE): now $0.705 per share quarterly dividend, was $0.6775. American Express (AXP): now $0.70 per share quarterly dividend, … Read more