Common Stock Investing Archives - Page 2 of 3

Shareholder Performance is Best Indicator of Business Performance

By Ted Kerr / February 4, 2021 March 29, 2021

The next component in our series on the three performances that drive a company’s investment performance is shareholder performance. Shareholder performance is driven almost entirely by the business performance of a company discussed in our last post. One of the better gauges of a top-performing company is how happy its shareholders are. Happy shareholders typically translate into sustainable business …

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How To Evaluate Business Performance

By Ted Kerr / January 28, 2021 March 29, 2021

In our last blog post, we introduced the notion that a company’s overall investment performance is driven by the orchestration of three different types of performance—business performance, shareholder performance, and investor performance. It takes a masterful, symphonic arrangement of all three to produce sustainable investment returns. In the next three posts, we take a deep …

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It Takes an Orchestra to Perform a Symphony

By Ted Kerr / January 21, 2021 March 29, 2021

Have you ever wanted to invest in a company because its stock was doing well or sell a company’s stock because it was lackluster? While that may seem like a sound basis for making an investment decision, it could result in a costly mistake. That’s because, at any given time, the company’s stock price performance …

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The Strange Case of Strategic Education, Inc.

By Ted Kerr / November 13, 2020 March 29, 2021

We’ve often used this blog to highlight the critical importance of being able to disassociate business performance from investment performance and using emotional intelligence to cut through the meaningless noise that pollutes our psyche. To do otherwise is a sure path to disappointment, and worse, severe investment underperformance. We’ve pointed out several cases where a company’s stock price seemingly …

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Is it Time to Eat Crow on Tesla?

By Ted Kerr / August 27, 2020 March 29, 2021

If there’s one thing the investment profession repeatedly teaches you it’s humility. If you invest long enough, stocks will humble you, and I’ve had my share of humbling events. The most recent being the astronomical ascent of Tesla’s stock (NASDAQ: TSLA), which recently surpassed $2,000 per share. When I penned the article, “Is Elon Musk’s Dream …

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A Company’s Return on Equity is Key to Long-Term Stock Performance – But is it Reliable?

By Ted Kerr / June 17, 2020 March 29, 2021

A company’s return on equity is the key to building long-term shareholder value. But how do you know a high ROE is not just a flash in the pan, masking underlying problems with the company’s fundamentals? Several years ago, we came to the realization that owning and managing a portfolio of carefully selected stocks offers …

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