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FWI Reading List for the Week of May 22, 2017
May 26, 2017

It’s worth noting that MRI scans have shown that the male brain does not fully mature until age 25 (age 21 for females), when considering that the age of the suicide bomber who strapped an IED to himself and ended the lif...

FWI Reading List for the Week of May 15, 2017
May 19, 2017

Another full week of corporate earnings (mostly benign) and political chaos (potentially problematic). By and large companies reporting this week across the broader markets stuck to the script, though retail continues to be a blo...

VIDEO: Our Analysis of GE’s ($GE) Recent Downgrade
May 19, 2017

Several days ago, the analyst covering General Electric for Deutsche Bank downgraded his rating on the company from “Hold” to “Sell.” Shares have fallen heavily and are lagging the market for this year, and since this comp...

VIDEO: The Railroad Pricing Environment is Changing
May 13, 2017

The railroad pricing environment is changing. Over the last decade and a half, railroads have been able to raise shipping rates very aggressively thanks to industry consolidation and a regulatory body that seemed more focused on i...

FWI Reading List for the Week of May 8, 2017
May 12, 2017

It was a busy week for politics and earnings both. We were happy to see that French voters heeded our admonition from last week, and think that the election of Macron bodes well for Europe throughout what we believe will be an uns...

FWI Reading List for the Week of May 1, 2017
May 5, 2017

Yay! We can all count on a future of cheap, high-quality healthcare!* In honor of the AHCA bill’s passing the House this week, I became sick as a dog, so have not been as active with my reading. That said, I did manage to ...

Reader Mailbag: The Shifting PBM Industry ($ESRX)
May 5, 2017

Some of Framework’s public posts are syndicated through SeekingAlpha, a popular investing research portal. Our last post on Pharmacy Benefit Manager (PBM) Express Scripts (Avoiding the Express Scripts Falling Knife: Frame...

Reader Mailbag: Superforecaster Question about Option Pricing
May 5, 2017

Framework’s latest project with the Superforecasters is related to an airline ETF and a major credit card company. In the context of this project, one of the Superforecasters had a question about option pricing – a t...

Why Stock Returns Under Trump Might Disappoint Investors
May 5, 2017

The stock market climbed after the US presidential election, and the big market indices set successive new highs. Trump’s Treasury Secretary Steven Mnuchin proclaimed that the index gains represented the markets giving the new a...

Avoiding the Express Scripts Falling Knife: Framework Investing Case Study
April 26, 2017

In a recent article, I wrote at length about the importance of what Warren Buffett calls “…a sound framework for making decisions…” The framework that I employ is based on an objective, scientific observation of operationa...

FWI Reading List for the Week of April 17, 2017
April 21, 2017

In a fortunate twist for investors everywhere, the world did not end in nuclear conflagration this week. We can count ourselves lucky that the US armada was headed in the wrong direction, I guess. Hopefully, French voters will hea...

Charting Out Union Pacific’s ($UNP) Boost in Cash-Based Profitability
April 21, 2017

Union Pacific has drastically improved its efficiency in converting revenues to profits over the past 10 years. Profitability for the first four years of this series were stable in the low- to mid-teens region in terms of Owners&#...

Busting the Myth of April Tax Selling
April 15, 2017

In my Twitter feed the other day, I saw a post from Josh Brown, the well-known investment personality and CEO of Barry Ritholtz Wealth Management. The stock market has been weak in April, with the NASDAQ down eight days in a row. ...

FWI Reading List for the Week of April 10, 2017
April 14, 2017

This holiday-shortened week was packed with geopolitical news, but other than felonious assault on an airline passenger and war-porn images of the “Mother of all Bombs,” my attention was caught by increased references ...

Where are Union Pacific’s ($UNP) Profits Going? The Answer may Surprise You
April 12, 2017

After posting my last article on Union Pacific, in which I characterized the firm as a monopolist, I got pages of angry comments from readers (mostly investors who have taken bullish positions in Union Pacific, rather than the bea...

FWI Reading List for Week of 3 April 2017
April 7, 2017

What a busy week in politics! A conservative British politician suggested that if the Spanish continue to be difficult about Gibraltar, they might need the kind of “correction” that PM Thatcher gave Argentina a few ye...

Massive Backdoor Compensation at CVS Health ($CVS)
April 1, 2017

A SeekingAlpha reader, Bob, sent me a note regarding a video I had done some time ago called Three Ways Buybacks Hurt Investors. This video talks about how we estimate the amount of “backdoor” compensation a company is paying ...

Three Examples of an Investing Framework in Action
March 31, 2017

Over the last couple weeks, we have written three investor education articles on the value of investing frameworks. The first explained why investing frameworks are invaluable tools for any investor. The second outlined three key ...

IOI Reading List for Week of 27 March 2017
March 31, 2017

The big news this week – historical, in fact – is that Britain submitted its letter stating its intention to formally withdraw from the European Union, triggering the formal Article 50 exit process. This, and our own e...

Why stock returns under Trump might disappoint investors
March 29, 2017

The stock market climbed after the US presidential election, and the big market indices set successive new highs. Trump’s Treasury Secretary Steven Mnuchin proclaimed that the index gains represented the markets giving the new a...

Here is What We Liked in Oracle’s ($ORCL) 3Q17 Earnings Release
March 27, 2017

Oracle reported third quarter results for fiscal year 2017 on March 16th and the share price jumped over 6% the day after the announcement was made. Since we first recommended an investment structure in Oracle, the firm’s st...

VIDEO: Union Pacific’s Monopoly Profits
March 26, 2017

Transcript Hi everyone and welcome to Sunday Morning Coffee with Erik. Today, I’m looking at an article that I published last week in Forbes – What Does A Monopolist Look Like? It Looks Like Union Pacific. I will not go th...

The Elements of an Effective Real-World Investing Framework
March 24, 2017

“To invest successfully, one doesn’t need a stratospheric IQ. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework” – Warren Buffet Over ...

DataBite: The Effect of Dividend Reinvestment on the Long-Run Real S&P 500 Price
March 24, 2017

We have been working with one of our hedge fund clients to apply the IOI model to the valuation of Real Estate Investment Trusts (REITs), and as part of this process, I have been thinking a good deal about the effect of dividends....

IOI Reading List for Week of 20 March 2017
March 24, 2017

In addition to reading through hundreds of pages about railroad pricing and learning something about the economics of airports and air carriers, I couldn’t help keeping up with the news out of Washington. Also, Ray Dalio pu...

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