James Montier: A Value Investor's Perspective on Tail Risk Protection: An Ode to the Joy of Cash http://myinvestingnotebook.blogspot.co.uk/2011/07/james-montier-value-investors.html Warren Buffett first coined the phrase «an economic moat», by which he meant the factors that enable some businesses to sustain and protect
above average profits for a long period of time.
The advantage of scale is not going away, but
the above average profits of the last four years may prove difficult to maintain, as the government will find it difficult to not increase regulation in response to complaints over high health insurance premiums in the face of what are viewed as high profits.
We'll predict that in 10 years, FAANG Inc will sell at a PE of 25, down from 30 but still substantial, and still forecasting well
above average profit performance.
Not exact matches
With stocks trading well
above their
averages, now may be a good time to sell big winners and put the
profits aside.
This was partly fueled by an even great expansion in
profit margins
above longer - term
averages than what was realized in the US.
Fun fact: companies that rank in the top quartile for ethnic and cultural diversity are 35 % more likely to produce
above -
average profits when compar..
By leveraging our Robo - Analyst technology to parse and analyze company filings, including the footnotes and MD&A, we have identified companies with multiple years of after - tax
profit growth and
above average returns on invested capital.
One study reported that traders made significantly higher
profits on days when their morning testosterone levels were
above their daily
average, and that increased variability in
profits and uncertainty in the market was reliably associated with elevations in their cortisol levels27.
But U.S. domestic corporate profitability is running 50 pct
above the long - term
average, while global
profits have soared even higher.
Regarding the desire to earn more income, I would add one more word of caution: Beware of financial fraud - peddlers who promise extraordinary
profits or «guaranteed»
above -
average returns.
Along with this, the net
profit margin of 14.25 % is
above that of the industry
average.
Flippers realized an
average gross
profit of $ 62,624
above the median sales price of $ 127,276, Attom reported.
According to a study by Treasury Department economists, «excess» or
above -
average profits by a few global giants have increased.
Given that most companies today are trading at valuations well
above their ten - year
averages (i.e. investors usually pay $ 18 - $ 22 for each dollar of
profit that Hershey generates, but today they are willing to pay $ 26 - $ 29).
This is because you can gain
above -
average profits if you can restrict your risk exposure.
According to a range of surveys, business confidence has now risen to levels consistent with well -
above -
average growth of the economy, with
profits, sales and employment all reported to have increased strongly in the past few months.
The graph
above shows that mining stocks are simply plunging in value, an occurrence that we are more than happy to take advantage of, and we have closed 8 winning trades so far this year as a result, each of them bringing in over 80 % in
profits on
average.
Australian Food & Grocery Council chief executive Gary Dawson said that while retailer
profit margins would fall to an
average of about 5.3 per cent this year they remained well
above those of food retailers in the US (3.8 per cent) and Britain (2.0 per cent) and the global
average (3.2 per cent).
With that said, 2017 has been another great year for our Best Bets, producing a
profit of +65.7 units to date and trending well
above our yearly
average of +47.9 units / season from 2012 - 2016.
The
average combined reading and math test scores one year prior to the management change at schools assigned to for -
profit and nonprofit entities were 0.39 and 0.13 standard deviations below the Philadelphia
average, respectively, while the pre-intervention scores of the full set of 142 regular public schools were 0.19 standard deviations
above the district
average.
T - mobile sets up the pricing at a point which covers just
above average and at times slightly below
average to be competitive and to make a
profit.
He wrote in a blog post a few years ago «we found $ 2.99 books, on
average, netted the authors more earnings (
profit per unit, multiplied by units sold) than books priced at $ 6.99 and
above.
The reason this is important has to do with that
average profit margin we calculated up
above, and the sustainability of their results.
In short, the company is a cash - gushing powerhouse with thick, consistent
profit margins and a huge competitive moat around its business... it pays an
above average yield (and a dividend that's steadily growing)... and it continually buys back its own stock.
Investors are always looking to
profit from the market and Canadian growth stocks are companies that have
above -
average growth prospects.
After - tax corporate
profits currently stand at 9.1 % of GDP, below 2012's 10.8 % peak but still well
above the 50 - year
average of 6.5 %.
One of the key technical measures to
profit short is to look at the same three moving
averages discussed
above.
If you can identify why a company keeps competitors at bay and consistently generates
above -
average profits, you've identified the source of its economic moat.
Trade the strategy only if the
Average Trade Profit of the last 10 trades is with the specified average trade profit range, typically a
Average Trade
Profit of the last 10 trades is with the specified average trade profit range, typically ab
Profit of the last 10 trades is with the specified
average trade profit range, typically a
average trade
profit range, typically ab
profit range, typically
above 0.
Some astute investors (such as Hussman and GMO) have argued in essence that the combination of record government deficit spending and unemployment levels has propped up corporate revenues while lowering labor costs, thereby boosting corporate
profit margins by as much as 70 percent
above historical
averages.
You seem to be saying that investor expectations are low, but I would suggest that they are high because
profit margins are well
above average, and forward estimates are higher still.
These are stocks that investors believe will offer
above -
average earnings growth, and therefore, they are typically more expensive relative to the company's current sales or
profits.
In return, Acadia Insurance provides its agents with
above average compensation and
profit sharing potential.
The truth is: In order to generate
above average returns, taking
profits too early hurts badly.
Profit margins are artificially high, and will come down somewhat from here, even if they remain
above average.
To the extent that we continue to force add - on effects in the form of declining employment and capital investment, we also reduce the likelihood that
profit margins and returns on equity will recover to the historically
above -
average levels which have prevailed in recent years.
As of last week, the Market Climate for stocks was characterized by reasonable valuations - moderate undervaluation on earnings - based measures that assume a reversion to
above -
average profit margins in the future, but continued overvaluation on measures that do not rely on future
profit margins being
above historical norms.
Even the best investment professional must expect that not more than two thirds of his decisions will prove to be
above average in
profits.
Is the
profit margins
above the industry
average?
Thanks to unusually high debt levels and unusually low labor compensation in recent years, the earnings peak in 2007 was based on
profit margins that were about 50 %
above the historical
average, and which have now collapsed.
We believe this criticism fails the test upon implementation because stock companies are not noticeably cheaper on
average than mutual companies — their premiums are roughly the same, but the
profit (the amount
above the cost) goes to stock holders instead of going to policy holders in the form of dividends.
Now that we've bounced off this resistance yet again, it might be a tempting area to take
profit in the future until we break out
above 100 - day moving
average.
Hired, trained, and inspired award - winning sales team, generating
profits at 10 %
above the company
average.
Developed customer service spare parts program to remain profitable in struggling economy with
average profit margins
above 90 %
Identified niche market that delivered
above -
average returns, in many cases adding more than 20 % to
profit margin.
Negotiated and awarded all trade contracts that resulted in a gross
profit of 20 %, which was 45 %
above the national
average.
Manage inventory and maintain excellent product turns while maintaining
profits well
above the industry
averages.
According to the study, the
average flip sold for 5 %
above the estimated market value for an
average gross
profit of $ 55,000 *.