RH

Berkshire Hathaway Invests in RH, a Quality Company in Our View

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Image Shown: RH now counts Berkshire Hathaway Inc as a shareholder, which saw shares of RH initially spike up on the news. By Callum Turcan In a recent regulatory filing, Berkshire Hathaway Inc (BRK.A) (BRK.B) announced it had acquired a ~$0.2 billion stake in upscale home-furnishings company RH (RH), formerly known as Restoration Hardware Holdings, by initiating a position in the company’s equity. Please note RH does not pay out a common dividend at this time, indicating Berkshire Hathaway is seeking capital appreciation with this investment. Additionally, RH’s fiscal 2018 ended on February 2, 2019. Business Overview As of February 2, 2019, RH operated 86 galleries and showrooms across the US, Canada, and the UK. That includes galleries highlighting offerings … Read more

Prepared Remarks From Nelson Exclusive Conference Call June 30

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Read President of Investment Research Brian Nelson’s prepared remarks for the yearly roundup conference call, held for Nelson Exclusive members. If you would like to subscribe to the Nelson Exclusive publication, please learn more about the publication here. The Nelson Exclusive publication does not reflect real performance. Performance is hypothetical and does not represent actual trading. Ladies and Gentlemen, Thank you very much for joining us on the first conference call for members of the Nelson Exclusive publication. The first year of the publication has surely been an exciting one for all involved. When I first wrote the introductory letter of the Nelson Exclusive on July 1, 2016, we were well-aware the market had laid down the gauntlet for this publication. … Read more

Valuentum’s 3 Breakthroughs in the Field of Finance and More

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Valuentum’s President Brian Nelson pauses for a picture before speaking at the CFA Society of Houston in March 2017. By Valuentum Editorial Staff Let’s cover Valuentum’s 3 major breakthroughs in the field of finance. The first one is big and may challenge you to rethink everything you think you know about investing. 1. On a logical framework, Valuentum has debunked John C. Bogle’s landmark syllogism that has paved the way for the concept of index investing. Index investing has been built on a logical shortcoming, whether supported by evidence or not. We think it is important that the investment community know of this. Read (pdf): The “Luck” and “Randomness” of Index Funds (2018), Brian Nelson, CFA See video documentation: /FALLACY_of_Index_Funds To … Read more

Is the Time Right to Invest in Home Improvement?

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The US housing market has been hot this summer. Both purchases of previously-owned homes and residential housing starts reached their highest monthly levels in the month of July since 2007. The improved demand has been driven by a resilient labor market, historically-low mortgage rates and “pent-up” demand from the Great Recession. Purchases of previously-owned homes advanced 2% sequentially in July to an annualized rate of 5.59 million houses, handily beating consensus estimates of 5.43 million. The increased levels of demand come despite limited support from first-time buyers, however. Millennials, now coming of age, are making their first “rent-versus-buy” decisions, and many, having witnessed the housing bubble burst late last decade, aren’t viewing ownership as the wise investment decision that their … Read more

Family Dollar’s “Upside” Surprise Wasn’t Great

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Off-priced retailer Family Dollar (click ticker for report: ) reported stronger-than-anticipated third quarter results Wednesday morning, led by strong sales of consumables. Revenue at the discount chain increased 9% year-over-year to $2.6 billion, roughly in-line with consensus expectations. Earnings per share actually declined a penny to $1.05, but that figure was better than the consensus estimates which called for a steeper decline. Free cash flow stands at a negative $275 million year-to-date as the company invests heavily in expanding and renovating its store base. The company has engaged in numerous sale-leaseback transactions, so the increase in capital spending has not materially drained the firm’s coffers. Taking a closer look at the numbers, we can see that the quarter was not … Read more

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

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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

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more