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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...

What Does a Monopolist Look Like? It Looks Like Union Pacific
March 24, 2017

At the end of last month, I published an investment idea to the members of our service regarding Union Pacific (UNP). The investment expresses a bearish view on the company’s value based on my analysis as a long-time value inves...

The Three Characteristics of a Good Investing Framework
March 17, 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 In our pi...

Lazard Investments – Investing Frameworks: De-biased Decision Making in Equity Investing
March 17, 2017

As we continue with with our focus on the value of investing frameworks, we have been studying external research on the topic and came across this excellent paper from Nicolas Sordoni, CFA, a Director at Lazard Investments. Th...

Trump’s Anti-Business Presidency
March 15, 2017

A week after Donald Trump was elected the 45th president of the United States, we published an in-depth report detailing our expectations for investing in the Trump Era. The full 25-page report covers three topics – the economi...

VIDEO: Using SEC’s EDGAR Database to Understand Nike ($NKE)
March 13, 2017

Good morning and welcome to Sunday Morning Coffee with Erik. It is, by my estimation, the worst Sunday of the year: that is the Sunday start of Daylight Savings Time. I just got back from Honolulu last week and was nearly recovere...

From Complexity to Insight: The Benefits of a Framework in Investing
March 10, 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 ...

IOI Reading List for Week of 6 March 2017
March 10, 2017

Sell! Buy! Markets hate complex headlines (Chicago Booth Review). An academic at University of Chicago’s Booth School of Business looked at the popularity of headlines on the SeekingAlpha stock research site. He found, unsur...

Three Things You Should Know About Union Pacific ($UNP)
March 9, 2017

Much of Union Pacific’s business stands to be hurt by the announced policies of the Trump administration. There’s no way around it – Union Pacific’s business thrives on trade. Intermodal freight – Union Pacific’s large...

How Should I Analyze P/E Ratios?
March 8, 2017

In my Quora feed the other day, someone asked about how one may best use P/E ratios. I took time to answer the questions because ratio analysis is one subject in which I see a lot of investors making mistakes. Ratio analysis is ...

What is the Best Way to Understand the Black–Scholes model?
March 6, 2017

Scrolling through my Quora feed the other day, I found someone asking for an explanation of the Black-Scholes Model. Everyone thinks that option pricing is difficult and arcane, but if you read the brief article below, you will ha...

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