Category Archives: Building Wealth
September is National Suicide Prevention Awareness Month
September is National Suicide Prevention Awareness Month.
- Suicide is the 11th leading cause of death in the United States.
- In 2021, there were 48,183 Americans that died by suicide.
- In 2021, there were an estimated 1.70 Million suicide attempts.
- On average there are 132 suicide per day.
Imagine if we could walk together toward a world without suicide. One in which we all have a greater understanding of mental health. One in which we all know how to be there for each other, including ourselves, when someone is struggling.
Together we can make a difference and break the stigmas around mental health, helping to prevent another person from taking their own life. Suicide prevention starts with all of us.
Morningstar’s 33 Undervalued Stocks
33 Undervalued Stocks for Q3 2023, according to Morningstar
Here’s the list of Morningstar’s top underpriced stock picks for the third quarter of 2023.
- Albemarle ALB
- Berkshire Hathaway BRK.B
- Blackstone BX
- Citigroup C
- Cognizant Technology Solutions CTSH
- Conagra Brands CAG
- Corteva CTVA
- Curaleaf CURLF
- Dover DOV
- Dow DOW
- Duke Energy DUK
- Entergy ETR
- Federal Realty Investment Trust FRT
- Hanesbrands HBI
- HF Sinclair DINO
- Illumina ILMN
- Jacobs Solutions J
- Kraft Heinz KHC
- Moderna Therapeutics MRNA
- NiSource NI
- Park Hotels & Resorts PK
- Pinterest PINS
- Salesforce CRM
- SLB SLB
- Stericycle SRCL
- Teradyne TER
- TC Energy TRP
- Tyson Foods TSN
- VF VFC
- Ventas VTR
- Verizon Communications VZ
- Walt Disney DIS
- Zimmer Biomet ZBH
Source: https://www.morningstar.com/stocks/33-undervalued-stocks-2
Stock picker factors:
- Stock price is cheap relative to intrinsic value,
- Company pays investor to wait
- Company ability to repurchase stock at a reasonable price
- Stock must be cheaply price (ROE, ROIC, P/E, P/Sales, P/FCF)
- Buy something at three-time cash flow and five percent dividend yield.
Source: https://www.morningstar.com/stocks/33-undervalued-stocks-2
China is No Longer Investable
Investing capital in China is both risky and is wildly unpredictable given the country’s lack of transparency, weak accounting standards, absence of the rule of law, and poor regulatory oversight.
Worse, the fate of the Chinese economy and business environment is almost entirely dependent on the domestic and global aspirations of a single man, Chinese authoritarian President Xi Jinping.
China is not a democracy and does not abide by the rule of law. Chinese Communist government’s sweeping control over the economy puts businesses, especially American-based firms, in a delicate position in trying to avoid the ire of President Xi and the Chinese government.
Hedge fund manager Kyle Bass, founder of Hayman Capital Management and long time critic of Communist China, has long proclaimed, “You have to say, each country run by maybe a despotic authoritarian should be re-reviewed and maybe not invested in.”
Bass cautioned against investing in Chinese stocks. He highlighted the risk of accounting fraud due to a lack of financial audits in China, and the prospect of further regulatory crackdowns on Chinese companies in the U.S. and crackdowns on American companies in China.
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September is Healthy Aging Month
September is Healthy Aging Month
According to the Centers for Disease Control and Prevention (CDC), Adults aged 65 and older need:
- At least 150 minutes of exercise a week (for example, 30 minutes a day, 5 days a week) of moderate-intensity activity such as brisk walking. Or they need 75 minutes a week of vigorous-intensity activity such as hiking, jogging, or running.
- At least 2 days a week of activities that strengthen muscles.
- Activities to improve balance, such as standing on one foot about 3 times a week.
If chronic conditions affect your ability to meet these recommendations, be as physically active as your abilities and conditions allow.
Examples of Aerobic Physical Activity
According to the CDC, aerobic physical activity or “cardio” gets you breathing harder and your heart beating faster. From pushing a lawn mower, taking a dance class, walking or biking to the store – these types of activities and more count. As long as you’re doing aerobic physical activities at a moderate- or vigorous intensity, they count towards meeting the aerobic guideline. Even something as simple as walking is a great way to get the aerobic activity you need, as long as it’s at a moderately intense pace.
Intensity is how hard your body is working during physical activity. Try a few of these aerobic activities:
- Walking or hiking
- Some forms of yoga
- Some yard work, such as raking and pushing a lawn mower
- Bicycle riding (stationary or outdoors)
- Water aerobics
“Higher intensity exercise had greater improvements for depression and anxiety, while longer durations had smaller effects when compared to short and mid-duration bursts.
“We also found that all types of physical activity and exercise were beneficial, including aerobic exercise such as walking, resistance training, Pilates, and yoga
https://tinyurl.com/mt2j67jy
African American Experience during WWII
African American Experience During World War II
The book provides a historical perspective of the 1.2 million African American service members’ experiences on the unit and personal level serving in a segregated U.S. military and for an American society that denied them equal opportunity and basic civil rights. African Americans served in every military branch (Army, Army Air Corps, Navy and Marine Corps).
Besides serving in segregated units, they were assigned menial tasks, provided inferior training and resources, denied opportunities to serve in combat units, and faced racism despite fighting for liberty, justice and freedom abroad while being denied those platitudes at home. Basically, they battled for liberty and freedom on two fronts? home and abroad.
5 Rules
“Money will make you more of what you are now.” ~ Dave Ramsey
Intrinsic Value by Warren Buffett
Warren Buffett’s investment strategy is simple:
- Buy businesses, not stocks. In other words, think like a business owner, not someone who owns a piece of paper (or these days, a digital trade confirmation).
- Look for companies with competitive advantages that can be maintained, or economic moats. Firms that can successfully fend off competitors have a better chance of increasing intrinsic value over time.
- Focus on long-term intrinsic value, not short-term earnings. What matters is how much cash a company can generate for its owners in the future. Therefore, value companies using a discounted cash flow analysis.
- Demand a margin of safety. Future cash flows are, by their nature, uncertain. To compensate for that uncertainty, always buy companies for less than their intrinsic values.
- Be patient. Investing isn’t about instant gratification; it’s about long-term success.
Warren Buffett is a proponent of value investing, which looks to find stocks that are undervalued compared to their intrinsic value.
Financial metrics like price/book (P/B), price/earnings (P/E), return on equity (ROE) and dividend yield carry the most weight on the Buffett scales. In addition, he seeks out companies that have what he calls “economic moats” – high barriers to entry for a competitor who may wish to invade the market and erode profit margins.
https://x.com/brianferoldi/status/1695438447417471471
Evaluating Companies
A way to evaluate a company’s profitability is to compare its return on invested capital (ROIC) to its weighted cost of capital (WACC).
Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. If the ROIC is higher than the WACC, it indicates that the company is creating value for shareholders.
Basics of Mindfulness Practice
Mindfulness helps us put some space between ourselves and our reactions, breaking down our conditioned responses. Here’s how to tune into mindfulness throughout the day:
- Set aside some time. You don’t need a meditation cushion or bench, or any sort of special equipment to access your mindfulness skills—but you do need to set aside some time and space.
- Observe the present moment as it is. The aim of mindfulness is not quieting the mind, or attempting to achieve a state of eternal calm. The goal is simple: we’re aiming to pay attention to the present moment, without judgment. Easier said than done, we know.
- Let your judgments roll by. When we notice judgments arise during our practice, we can make a mental note of them, and let them pass.
- Return to observing the present moment as it is. Our minds often get carried away in thought. That’s why mindfulness is the practice of returning, again and again, to the present moment.
- Be kind to your wandering mind. Don’t judge yourself for whatever thoughts crop up, just practice recognizing when your mind has wandered off, and gently bring it back.
That’s the practice. It’s often been said that it’s very simple, but it’s not necessarily easy. The work is to just keep doing it. Results will accrue.
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