Not exact matches
Bellwether only invests in high quality, compelling
opportunities with companies that have
strong balance sheets, proven sustainable
earnings growth and a track record of regularly increasing their dividend or distribution.
General Electric has been a very frustrating holding during 2017, as business fundamentals have lagged behind our expectations, but we believe a fresh look reveals an attractive
opportunity to own a high - quality, improving business with a
strong new management team at just 12.5 x our estimate of forward
earnings.
In each case, the company generates
strong returns, needs to reinvest their
earnings to fuel growth and has the
opportunity to do so.
Returns on their existing business may be
strong, but most companies don't have the
opportunity to reinvest their
earnings at similarly attractive rates.
Growth investors emphasize
strong future
earnings as the investment
opportunity, creating the two investing styles of «Value» and «Growth», instead of «Cheap» and «Expensive».
You also need to analyze their P / E (price to
earnings ratio) and look for good values — low P / E ratios,
strong fundamentals, and
strong future profit
opportunities.
By not allowing teacher compensation to vary with outside
earnings opportunities, we implicitly ask individuals with
strong math and science skills to make a larger financial sacrifice to enter and remain in the profession.
His reasons for adding YELP to his list include: (1) over-reaction to recent disappointing
earnings, (2) increasing revenue, (3)
strong in mobile, (4) tripling it's marketing budget in 2015, and (5) huge market
opportunity still ahead of them.
The problem though is that Hershey and Brown Forman rarely get cheap or even present investors with an
opportunity to buy shares at a fair price (what does it tell you when it takes a financial crisis to knock these stocks down to fair value), and the businesses are so
strong that they still deliver great returns even when the shares only offer a starting
earnings yield around 3 - 4 % and a dividend yield half that.
Lorillard presents a good buying
opportunity in current uncertain times for investors seeking yield,
strong cash flow generation and consistent
earnings.
«The host of companies that don't have
strong internal
opportunities are going to have a tougher time demonstrating acceptable
earnings growth,» he says.