Red Flags: Intangibles

I very much dislike intangible assets, the growth or continued presence of them on a balance sheet always throws up a red flag for me. Maybe it is due to my value investor perspective but giving financial credence to a resource that I can’t see, can’t touch and can’t prove generated a cent of revenue in a business is something I just don’t like.

Definition

An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today’s marketplace.
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The Best Month To Buy Stock

Before starting I should say that I am not a fan of market timing, I think trying to plot an irrational event rationally is next to impossible. However, having said that, if you have the choice between two options both with equal merit why not pick the option with a track record of previous success? In my case the question is, should I get my tax forms prepared early and wait for the final forms to arrive next month and then send in, or wait until the final forms arrive before I start putting everything together.
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The Right Investment Tools For the Job

Give us the tools and we will finish the job. Winston Churchill

The evaluation of companies was once a very laborious exercise. Information about historic earnings and historic pricing information involved significant research and compilation. Today that effort is significantly reduced, thankfully there are numerous sources one can access to retrieve sets of desired information. Choosing just one source in all these options is often difficult though. Today we are going to have a look at some of the tools I use in analyzing companies I would love to hear so of your feedback and suggestions on other tools you use.
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Graham vs. Greenblatt (Session 2) Buy America & Buy Big

Joel Greenblatt is a modern value investor, his approach as we outlined in our previous post was to find value companies like Graham, but he also wanted a company that has potential for the future. The first set of criteria looks very similar to Graham.
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What is it?

1. Establish a minimum market capitalization (greater than $50 million is recommended).
2. Exclude utility and financial stocks and any foreign companies (Non US).