My Financial Blog

This is my Financial Blog on stocks using Value and Growth Investing methods, particularly Buffettology. These methods typically require the Intelligent Investor to buy and hold the stock for 10 years or more. For those that are Day Trading or are buying and selling stocks within a year's time frame, this method will NOT work for you. Any information is solely for educational purposes, not for trading purposes or advice.

We use Google Spreadsheets to do our analysis because it is capable of delivering the stock price in real-time. The calculations in our analysis changes in real-time as the stock price changes every 20 minutes.
If you click on "Subscribe to posts" below, you will get the RSS feed to this blog.

Archive: My Stock Holdings 2021

posted Apr 30, 2022, 8:40 PM by Intelligent Investor   [ updated May 4, 2022, 1:53 PM ]

Archive: My Stock Research 2021

posted Apr 30, 2022, 8:40 PM by Intelligent Investor

We Think the Bottom for this Mild Correction may have Happened this Past Thursday on February 24th

posted Feb 28, 2022, 10:08 PM by Intelligent Investor   [ updated Mar 2, 2022, 3:08 PM ]

We do not see a recession in the near horizon. The U.S. economy is still growing. The Federal Reserve is still accommodative. The only thing we see is people panicking. On February 24, 2022, Russia invaded Ukraine. The Dow Jones and the S&P 500 re-tested its lows for the year at a 10% correction. Gladly they both came back. The Nasdaq, which has been overvalued for quite some time, also re-tested its lows for the year at a 20% correction. Surprisingly, it also came back. That day was a good time to buy stocks at a discount. It was like having a President's Day Sale.
The Dow has been up a bit over 1600 points since the 24th, we don't think it's going back down. Although we might be wrong, we just have to wait and see. But that day seems like it was the bottom for this mild correction. Everyone is expecting volatility in the coming days, but we think the overall direction this market is going is up, up, up, and away!

Our Plan is to Buy the Dips. Buy Whenever We See Red.

posted Feb 26, 2022, 9:36 PM by Intelligent Investor   [ updated Feb 26, 2022, 11:04 PM ]

We believe the geopolitical issue occurring in Ukraine will be short-lived. We also believe that amidst a high-inflationary environment, many U.S. Equities will prevail. We plan to continue buying and accumulating every time the Dow Jones, Nasdaq, and S&P 500 turns massively red. Keep in mind, interest rates are low. The Federal Reserve is propping up the economy. We are not in a recession. We are also not in a bubble. We currently believe that we are in a mild correction. America is unstoppable. Be greedy when others are fearful.
The following are stocks that could do well in a high-inflation economic environment:
  • Kraft-Heinz (KHC)
  • Coca-Cola (KO)
  • Kellogg's (K)
  • General Mills (GIS)
  • Ford (F)
P/E ratio  13.51  26.97  15.75 18.33   9.96
Forward P/E ratio  15.08  25.54  15.95  18.12  8.59
Dividend Rate   4.03%  2.80%  3.53% 3.00%   2.24%
 Price to Book Value 0.99  11.82  6.04  4.36  1.51
 Debt to Equity Ratio  0.43  1.66  1.68  1.15  1.82
Note: As of 2/25/2022

Disclosure: We own shares in Kraft-Heinz (KHC) and we currently do not own shares in Coca-cola (KO), Kellogg's (K), General Mills (GIS), and Ford (F).

Swapped Disney (DIS) for more Paramount Global (PARA)

posted Jan 17, 2022, 11:36 AM by Intelligent Investor   [ updated Mar 2, 2022, 7:28 AM ]

A couple of months ago, we sold most of our shares in Disney (DIS) in exchange for Paramount Global (PARA), formerly known as ViacomCBS (VIAC). Unfortunately for us, we had to take our meager profits in Disney and sell it at a low price of $144.94 in order to buy Paramount Global at a low price of $31.70. Instead of owning two companies in the streaming TV business, we opted to own just one. The valuation of Paramount Global is much more attractive and this year, the growth in their streaming TV business is growing much faster than Disney's. Paramount Global is also in a stronger position to continue to payout dividends, which is what we like. We prefer stocks that payout dividends, so that we are getting paid as we wait for the stock to skyrocket. Disney had to stop paying dividends during the pandemic due to massive losses in their parks business. A comparison of the valuations in both stock is in the table below.

 Metric PARA   DIS
P/E ratio   7.77  137.34
Forward P/E ratio   10.06  37.15
Dividend Rate   2.61%  None
 Price to Book Value  1.16  3.12
 Debt to Equity Ratio  0.86  0.61
Note: As of 1/17/2022

We are also encouraged to buy more PARA due to the massive insider buying by both the CEO, Bob Bakish and Chair Woman, Shari Redstone.
Disclosure: We own shares in Paramount Global (PARA) and we no longer own shares in Disney (DIS).

Archive: My Stock Holdings 2020

posted Jan 17, 2022, 11:05 AM by Intelligent Investor   [ updated Jan 23, 2022, 6:55 PM ]

Archive: My Stock Research 2020

posted Jan 17, 2022, 11:04 AM by Intelligent Investor   [ updated Jan 23, 2022, 6:56 PM ]

Buying the Dip in ViacomCBS (VIAC) and Sold Pfizer (PFE)

posted Mar 27, 2021, 12:21 AM by Intelligent Investor   [ updated Mar 29, 2021, 12:09 AM ]

A very big opportunity came today to buy ViacomCBS (VIAC) at a ridiculously low price. Unfortunately we had to sell Pfizer (PFE). Pfizer has been a big disappointment for us. The stock didn't budge too much in spite of making billions in COVID-19 vaccine. We got bored and just swapped Pfizer for ViacomCBS.
We've been accumulating ViacomCBS (VIAC) for the past year and the stock has dropped 40% over the past few days. We took this as an opportunity to buy more as well as get out of our losing trade Pfizer (PFE). The fundamentals of ViacomCBS' business is still intact. During the last quarterly report, the company announced the following:
  • Accelerated Domestic Streaming and Digital Revenue Growth to 72% Year-Over-Year
  • Grew Global Streaming Subscribers to 30 Million
  • Grew Pluto TV Global Monthly Active Users to 43 Million
  • Grew Domestic Streaming Subscribers to 19.2 Million, up 71% Year-Over-Year
  • Grew Pluto TV Domestic Monthly Active Users to 30.1 Million
  • Revenue Rose 3% Year-Over-Year
  • Beat Earnings Estimate $1.04 vs. $1.02 in the 4th quarter

As far as we are concerned, the company's Global Streaming Ambitions are firing on all cylinders. But yet the stock was pummeled downwards, so we took notice. The P/E ratio at today's close is at 12.3 and the dividend yield is now at 2%. Based on the valuation and the company's very positive financial report, it's a no brainer to buy on this dip!

In Benjamin Graham's book, the Intelligent Investor is wiser to form their own ideas of the value of their holdings, based on full reports from the company about its operation and financial position. There has not been any company reports nor news that has said the fundamentals of the company is deteriorating. We believe there will be 2 streaming TV providers that is set to dominated the future of television. One of them is ViacomCBS (VIAC) and the other is Disney (DIS). The company is still on track to dominate the global streaming TV market. They have not made any announcement that says otherwise, like nothing that says their plans have been derailed. Any company announcement over the past few weeks have been very positive.
Any news that have been dominating the headlines over the past few days has NOT come from the financial statements of the company. It's just mere opinion and panic. So yes, please, Mr. Market, since you've quoted us a ludicrously low price for ViacomCBS (VIAC), as an Intelligent Investor, we will be more than happy to take your shares in away from you!

Updated 3/28/2021:
News came out this weekend that the record drop in ViacomCBS (VIAC) share price was due to a hedge fund going bankrupt. Apparently, the sell-off in VIAC this past week was NOT REAL, like I have mentioned above, the company's fundamentals are still intact. Some hedge fund named Archegos Capital screwed up and was forced to sell all of their VIAC holdings as well as other stocks. They flooded the market with 30 Million shares of VIAC. We expect the shares of VIAC to go back up to $100/share, right where it was, just before the sell-off started, maybe by April or May, or maybe even sooner. We smell cash money buying into this dip. The Intelligent Investor wins again!
Disclosure: We own shares in ViacomCBS (VIAC) and we no longer own shares in Pfizer (PFE).

Accumulating ViacomCBS (VIAC)

posted Jan 25, 2021, 5:25 PM by Intelligent Investor

We believe there is a greater opportunity in ViacomCBS (VIAC). We have been accumulating the stock for the past year. Our analysis is a mere common sense. During the course of the COVID-19 pandemic, people are staying at home. The cost of high-speed internet is now universally accessible. There are low-income, student, and senior citizen programs where it is available for as low as $10/month. As people are  on lockdown with  "stay-at-home" orders, there are more people stuck at their homes with nothing to do, looking for entertainment. For less than $10/month, streaming TV, seems to be, what many people are doing to keep themselves entertained while they are on lockdown.

We believe the pandemic may have accelerated Disney's streaming service subscriber rate. They now expect 300-350 million subscribers to their streaming platforms, Disney+ and Hulu, by the year 2024, shattering previous guidance.

ViacomCBS (VIAC) has a deal to offer 14 channels to Hulu. What this means is they have an opportunity to "piggy-back" off Disney's success!

They will also be launching their streaming service Paramount+ on March 4, 2021. When Disney launched their streaming service Disney+, their stock skyrocketed. We also expect the same for ViacomCBS' stock when they launch their streaming service.

From a valuation perspective, the P/E ratio of ViacomCBS (VIAC) currently stands at around 11 as of 1/25/2021. The Market Cap is at around $28 Billion, while the value of their assets (not including debt) is at around $33 Billion. And their annual dividend yield is currently around 2.00%. Mr. Market has been undervaluing ViacomCBS for more than a year! Their stock is cheap!

Disclosure: We own shares in ViacomCBS (VIAC).

Sold AXP, BRK.B, JPM, and WFC

posted Jan 19, 2021, 7:53 PM by Intelligent Investor

We sold all of our shares in American Express (AXP), Berkshire Hathaway Class B (BRK.B), J.P. Morgan (JPM), and Wells Fargo (WFC).

American Express (AXP) - We just do not want to be in the financial sector at this moment. The COVID-19 pandemic is hurting small businesses and many of American Express' costumers are small business owners. We believe over the long run, this company will do well. However, we are not sure if the stock will perform well in this economic environment. If we are not sure about something, we just sell it and take our profits. Even if our profits are small.

Berkshire Hathaway Class B (BRK.B) - Berkshire always does well during recessions. Recessions is where Berkshire acquires ailing companies and becomes bigger. We are probably going to regret selling this stock. However, we see a greater opportunity elsewhere and we need to raise cash.

J.P. Morgan (JPM) - This is the strongest bank in the world. They have a fortress balance sheet and out of all the banks in the U.S.A., this bank will survive the pandemic induced recession. This is a good long-term investment. The stock is significantly up since last year. However, Berkshire Hathaways sold all of their shares in J.P. Morgan and we do not know why. Part of our strategy is to simply follow Warren Buffett. We make an assumption, he sold all his stock in JPM for a good reason.

Wells Fargo (WFC) - This company has ruined their reputation...big time! They also cut their dividends! Berkshire Hathaway has also sold a lot of their holdings in this stock. We are worried. If we are not sure, just dump it.

In summary, we need to raise cash because we see an opportunity elsewhere, we also do not want to be in the financial sector at the moment. We also believe that there is a possibility of some Disruptive Technology going on in the financial sector due to the likes of PayPal, Venmo, Amazon Pay, Apple Pay, Facebook Pay, and Square. These payment services are currently small, however, we see them growing exponentially in the future because they are much more "superior" than a checking account.

Disclosure: We do not own shares in American Express (AXP), Berkshire Hathaway Class B (BRK.B),  J.P. Morgan (JPM), and Wells Fargo (WFC) anymore.

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