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Investment Philosophy
Written by Dr. Econ   
Wednesday, 13 July 2011 00:00

Seeking Alpha CertifiedOne must use the power of Economics & Statistics combined with knowledge of Finance. That is the primary reason the website is named EFS Investment. I use fundamental analysis to pick the best stocks for the long term. I use statistical analysis to benefit from cyclical market anomalies, and I use technical analysis to confirm my decisions.

My long-term stock picking models are back-tested. Before choosing any stock, I go back 5 years, and see how my models could have worked so far. I continuously perform sector wide back tests within specific sectors, and check the past data to make future estimations. If investors used my models, those bubbles would have never existed. Investment is not an art; it is a science which can be learned through reading, application, and experience. I am not a trader, nor a market player. One can enjoy short-term rewards at the risk of losing large amount of capital in the long run. Thanks to my access to special trading software, I can make my decisions on a global scale. I am on the bullish side of the market: A ttm [trailing twelve month] P/E ratio of 15 (+-5) is well justified for the U.S. market. Here, is my last 20 articles on SeekingAlpha:

You can download the Fair Value + O-Metrix + Graham Margin of Safety Formula Excel Sheets. I put a description of those formulas in a separate sheet for convenience.


Attachments:
FileDescriptionUploaderFile sizeLast modified
Fair Value EstimatorFair Value + O-Metrix + LongTermValuation FormulasDr. Econ32 Kb15/09/11 05:24
Last Updated on Thursday, 06 October 2011 06:55
 

Comments  

 
+1 #4 Dr. Econ 2011-09-27 03:39
This add in is pretty impressive. Thanks for letting me know about it. Let me see the things I can do with the smf_addin.
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0 #3 Lightway 2011-09-27 03:27
Okay thank you, I will see if I can scrape that information.

I am using smf_addin for Excel by the way, it's pretty slick:

http://finance.groups.yahoo.com/group/smf_addin/
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0 #2 Dr. Econ 2011-09-25 16:59
Hey Lightway,

I usually get this information from the Federal Bank of St. Louis, which offers Moody's corporate bond data:
http://research.stlouisfed.org/fred2/categories/119

For a company with a strong balance sheet as Coke, I would use AAA rating, which is 4.37 as of September 2011.
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0 #1 Lightway 2011-09-25 16:53
Hi Doc,

For your Fair Value Estimator spreadsheet, where do you typically pull the information for the "corporate bond yield" line item?

When I do a search here for Coke, there are about 27 bonds, and they have a few different ratings.

I was looking to see if I could automate that line by pulling it automatically into Excel, if possible, so wanted to see how it was calculated.

http://reports.finance.yahoo.com/z1?b=2&is=coca&so=d
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