Date updated:02-05-2007
Buying great companies at a discount based on historic fundamentals and future earnings.

-
CHS
Chico's F A S Inc - $13.13
- +5.29%
- $12.65
At current Earnings per Share of 0.97 compounded at 20% growth (analyst predict 21-25%) multiplied by a conservative future p/e of 20, that's a future stock price of $48.27 in 5 years. Based on bought price of $22.36, that's a compounded rate of return of 17% for 5 years. -consistent earnings growth. 32% in the past 5 years. (never had a down year, I give that an A+) -consistent high ROE every year (2006) 28%,30%,32%, 34%,36%,41%,35%,32% (1999). -gradual profit margin improvement from 8% in 1999 to 13% in 2006 -0 debt (owes no money) and cash on hand of 400+ million. I bought at $25.58 RetireRichBlog.com

-
COF
Capital One Finan - $39.78
- +5.60%
- $38.20
At current Earnings per Share of 7.52 compounded at 12% growth (analyst predict 13%) multiplied by a conservative future p/e of 14, that's a future stock price of $186.77 in 5 years. Based on bought price of $77.02, that's a compounded rate of return of 19% for 5 years. 10 yr historics -founder is still with the company - ROE is always above 20%. - Earnings growth has been 23% - Book Value growth has been 30% Bought at $77.70 RetireRichBlog.com

-
SHLD
Sears Holdings Co - $70.51
- +4.23%
- $69.35
Eddie Lampert is the next Warren Buffet. I bought at $146.79 RetireRichBlog.com

-
UPS
United Parcel Svc - $56.20
- +2.44%
- $55.10
Historics -ROE averages over 20% a year. -profit margins have steady increased from 5% in 1996 to 8% currently. -steady and ever increasing dividends from $0.81 in 2000 to $1.52 currently. -14% earnings growth for the last 10 yrs. Future -Current eps of $3.77 compounded at 12% earnings growth for 5 years (analyst predict 13%) mulitplied by a conservative p/e of 22 = $146.17. At a recomended buy price of $73.87, that's 15% + 2.10% dividend = 17.10% compounded rate of return. for 5 years. Recommended buy at $73.87 RetireRichBlog.com

-
KB
Kb Finl Gp Inc - $52.55
- +3.65%
- $51.69
Kookmin Bank (KB) provides commercial banking services to individuals, small and medium sized enterprises, and corporate customers in Korea. As of December 31, 2005, Kookmin Bank operated 1,097 branches and subbranches, 8,365 automated teller machines, 608 cash dispensers, and 467 passbook printers. Future view -At current year end EPS of $8.72 compounded at 18% growth for 5 years (analyst predict 29%), multiplied by a conservative p/e of 10 = $199.49. At today's closing price of $80.75, that's a compounded rate of return of 20% for 5 years. Again, recommended at $80.75. RetireRichBlog.com

-
TXN
Texas Instruments - $24.63
- +2.45%
- $24.15
Recomended at $29.57

-
COP
Conocophillips - $52.85
- +1.42%
- $52.79
Historical Data. -compounded earnings grown has been 16% since 1996 -compounded book value grown has been 20% since 1996 -ROE is not very consistent ranging from 3.3% to as high as 35%. -Price to book value is $1.28, lowest in its history. Future View. -At current eps of $10.80 compounded at 5% growth for 5 yrs (analyst predict 7%) multiplied by future p/e of 9 = $124.05. With it's current dividend of 2.3% and at closing price of $60.34, that's a compounded rate of return of 18.30%. Factors to consider. -Warren Buffett bought it at an average price of $61.80. -George Soros bougt it at an average price of $64.30. -Oil is trending lower so make sure you scale into the stock. (Don't buy all at once) I bought at $60.30. RetireRichblog.com

-
NBR
Nabors Inds Inc N - $22.88
- +4.05%
- $22.35
Future view -Based on current eps of $2.39 compounded at 18% (Analyst predict 57%!) in 5 years, multiplied by p/e of 15 = Compounded rate of return of 20% in 5 years based on stock price of $32.52 Other factors to consider -Jim Cramer owns this stock, started a postion I think around $35. He regards the CEO Eugene Isenberg as the best in the industry. -Eugene Isenberg recently purchased in Feb $6.6 million worth of stock at $32.98 -During 2005, Nabors commenced building new rigs in signiciant quantities for the first time in over 20 years. Ten such new drillings rigs were delivered prior to February 7, 2006. As of Feb. 7, 2006, Nabors had signed contracts or letters of intent for 70 rigs. I bought at $31.36.
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A. My answer may disappoint you.
(1) Hedge funds are secretive. I
interviewed with some and they do not
even has a sign. Hard to get to talk to
them
(2) IB more visible if you find some
friends
(3) I think Fed is open at least to High
school orgnanized trip, but less
interesting
(4) It was closed to public Last time I
visited NYC 3 years ago.
Still interesting to find thestreet.com
crew or NASDAQ fast money set at time
square. Have a nice trip
A. The only one I own : SLX,
too hard pick a winner out all of them
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03/06/2007 11:09 AM CST Asked by Land on Molokai
How do you fare short term and long term?
I have been looking at your investments and it sounds like you know your stuff.
I'm just now hoping in the market, I do own quite a bit of VZ but I'm looking to expand into other stocks and considering coping what you are doing.
What do you think?