MTLS

Video: How Many Stocks Should You Own?

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Video: Valuentum’s President of Investment Research, Brian Nelson, CFA, explains the importance of diversification, how to think about firm-specific and systematic risk, how many stocks one should own to achieve 90% of the diversification benefits, how to think about active asset allocation versus active equity management, and why diversification is a means to achieve goals, not the goal itself. A content-packed 14-minute video. Don’t miss it! –——— Tickerized for holdings in the ARKK. Also tickerized for META, PYPL. Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE. Some of the other securities written about in this article may … Read more

Some Questions Answered: The Fair Value Estimate Range and ROIC

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Q: In the 16-page stock reports, why doesn’t the ‘percentage undervalued / overvalued’ match up to the actual discount/premium to Valuentum’s fair value estimate of the company? A: We view the intrinsic value of a company as a Fair Value Range, not necessarily a single point estimate, so the undervalued and overvalued calculations match up to either the low fair value estimate or high fair value estimate, respectively. Within the context of a margin of safety, we wouldn’t necessarily view a company to be worth precisely $55 per share, for example; instead we’d view the company as worth between $50 (low end fair value estimate) and $60 per share (high end fair value estimate), with the low and high fair … Read more

Commodity Price Pressures Dinging Industrial Bellwether Expectations

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By Kris Rosemann Commodity resource prices, while suppressed, are said to be stabilizing, but stabilization at low levels does little good for many operators tied to commodity-based end markets. Such is the case for several industrial giants General Electric (GE), 3M (MMM), and Caterpillar (CAT), all of which have seen their worldwide operations impacted by the effect that a prolonged trough in commodity prices has had on global economic growth, “Industrial Bellwethers Hit by Global Economic Growth Concerns.” We recently highlighted the organic growth pressures industrial bellwether Honeywell (HON) has been experiencing, “Honeywell’s Stock Up 170% Since End of 2009; GE a Better Bet?” and its peers have been echoing its concerns. GE reported third-quarter earnings October 21, and while … Read more

3D Printing: Can We Print Some Stability?

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Industrial bellwether and newsletter portfolio holding General Electric’s acquisition of two European 3D printing companies has brought the budding technology back to the fore of investor’s minds. Let’s take a look at some of the major players in the space as well as how the market may develop in coming years. By Kris Rosemann 3D printing may have once seemed like a technology we would only see in a futuristic sci-fi movie, but it is now a reality and has been so for some time. Though it will inevitably revolutionize the $12 trillion global manufacturing market and is one of the highest growth potential areas, plenty of questions remain surrounding the foundation of the industry that continues to be laid, … Read more