Free Discounted Cash Flow (DCF) Spreadsheet for Mac

I promised a couple of readers a version of the DCF Spreadsheet I use to help evaluate long term picks. I decided to offer it to anyone who can use it, i.e. Mac users only. Remember, if you use the free DCF spreadsheet do not base any investment decisions solely on a spreadsheet.

A Premium Service worth checking out – Guru Focus

One of the premium services that I have subscribed to is GuruFocus. Although the site is known for tracking the trades of famous and the not so famous, but perhaps, interesting investment “guru’s”. I am not much of a follower. If you are a value investor you are probably by nature also slightly contrarian. Of course, if the numbers add up for you it doesn’t hurt to have a Seth Klarman or Marty Whitman on your side. And I will analyze some companies that one the greats is interested in. I found Facet Biotech (FACT) this way and profited more than 70%.

Beware of Brokerage Costs

The more money you spend earning your money, the less you keep. This includes premium services, taxes, transaction costs, brokerage fees. Anything that keeps your dollars from compounding in the future. In general this concept is pretty easy to grasp but in particular small money and beginning investors need to know that there is a difference between paying $10/trade and $5/trade.

A possible Net Net stock – but not for Me

I want to highlight an investment idea that Jae over at Old School Value posted: Insmed Inc. (INSM). I decided rather than ignore investment ideas that I don’t buy into, I would mention them and let you the reader decide if it interests you. Check out his evaluation here of INSM. He makes a good case for the stock. Some of you may want to invest in it. Jae is a very smart guy who has had lots of good advice, you could do worse than follow his lead.

Small Money Investors – Don’t Invest like Warren Buffett

When I say don’t invest like Warren Buffett, I mean don’t invest like Buffett does now. We can look at this in two parts.

What not to believe for Beginning Investors

A lot of crap has become accepted in financial and academic circles. Some ideas also end up in investing circles and they are regularly recycled like the theory is fact. Sometimes the has already been discredited or is logically foolish, but they get pushed on the unsuspecting anyway. Remember if an idea seems illogical, it probably is. Let’s look at a couple these ideas and how they can help us anyway.

How Often do Investment Opportunities Arise?

even within the value investing community there are different notions of how often real investment opportunities arise. Buffett has said you should only swing at a “fat pitch.” I loathe baseball, but think the advice is smart nonetheless. To me investment opportunities should be Great investment opportunities. If you can’t find anything looks like a great opportunity, you shouldn’t invest in anything.

Beginning Investor Links

If you are just starting your investing these are good websites to check out for different reasons. They are also good for a small time investor.

American Association of Individual Investors – This is the website of the organization that is devoted to helping individual investors like you and I become better informed, and to make better investment decisions.For a small fee ($29) you can join. They have some interesting screeners that they have set up based on different investment strategies. Probably worth it just for that one feature. They also have lots of seminars and speakers if you become a member.

F Wall Street – I have commented on Joe Ponzio’s website before. He has an easy to navigate and elegant site that is full of information on valuations from a mostly Warren Buffett style investing approach.

What do Beginning Investors Need?

If you are a beginning investor what do you need to succeed? The short answer is perspective and patience. But the devil is in the details.

Perspective comes with time. But if you are starting out how can you possibly gain the perspective. Borrow someone else’s. There are gobs of great investors that will tell you how great they are on their websites. A few great investors have written books that are worth reading. Joel Greenblatt and Seth Klarmann come to mind. Spend some time reading and digesting the methodology. Pick it a part and decide what works for you and what doesn’t.

Wells Fargo Online Brokerage – not good for small time investors

Because I happen to have an account with a large balance, I was invited to get Wells Fargo’s online brokerage with the lure of 100 free trades. Sounds great right. Here’s the catch. You have to have a minimum deposit of $25,000. And they charge an IRA fee. And they charged a penny stock penalty. I learned much of the downside later. What deterred me was ultimately their incredibly poor customer service and the extreme difficulty of establishing the account.

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