Resources

Hedge Fund Wisdom
This is one of my favorite resources.  This quarterly publication tracks all of the buys and sells of 25 top Hedge Fund managers including Warren Buffett.  They also have commentary on each fund manager, what their investment strategy is, and why they bought or sold certain companies.  They have a consensus Buy and consensus Sell list at the beginning of the report.  If multiple managers are buying or selling the same company in the same quarter, it goes on this list.  Lastly, they pick 2 companies in each report and provide a very detailed analysis on each.  www.hedgefundwisdom.com

Value Investors Club (free site)
This site was created by Value Investor, Hedge Fund manager, author and Columbia University adjunct professor, Joel Greenblatt.  This site allows individuals to post investment ideas on a monthly basis.  The best ideas get posted to the site.  If you are an accepted member, you can view the picks in real-time, if you are not accepted, you can still access this info, but the data is one quarter delayed.  valueinvestorsclub.com

Magic Formula Investing (free site)
This is another site created by Joel Greenblatt.  This site sorts out companies based on the two key concepts in his book, The Little Book that Beats the Market.  The site searches for companies within a market cap that you choose and then sorts the list with the companies within that market cap range that have the best combined score for Earnings Yield and Return on Capital.  I got the idea to purchase EBIX from this screener.  I bought it at $15 and again at $12.80.  Today it is at $56.  www.magicformulainvesting.com

Value Line (free if your library has a subscription)
I spend a lot of time on Value Line.  Their Investment Survey is one of most respected publications in the industry.  The online (or paper) publication covers approx. 1,700 stocks and updates the report on a quarterly basis.  This site provides you with many different stock screeners, analyst reports, safety ratings, timeliness ratings, financial strength ratings, seventeen years’ worth of financial data on one page including historical PE, average annual PE, insider transaction history, debt structure, earnings history, earnings predictability, 2-4-year price target projections, and a whole lot more.  They also have and industry in favor and out of favor list.  Many libraries have this for free if you set up a free membership with your county library.  My library has this available online, so I can do all of my research at home or in my office.  www.valueline.com

Guru Focus (limited free data)
This is another excellent resource for the value investor.  On this site, you can get delayed buys and sells from your favorite Value Investors (guru’s) like Buffett and Greenblatt, or for a fee you can get real time trades.  You also have access to several stock screeners, Insider Buys and Sells, Guru Buys and Sells, Insiders Buying and Selling other Companies, massive amounts of tools such as screeners, video interviews, and 15 years’ worth of financial data.  It’s also a great site to do a side by side comparison of company competitors.  If you don’t want to pay the annual subscription fee, that’s ok because you have access to a lot of free information.  On the company summary page (free), you can see the 5 different valuation models, the Piotroski F Score, and many financial ratios, and earnings predictability. www.gurufocus.com

Old School Value (limited free)
Jae June has done an excellent job with this site.  It is value investing only.  I would recommend signing up for his free newsletter and read every article that is published.  He also has one of the best software programs I have seen to speed up the research time for screening, analyzing, and valuing companies.  www.oldschoolvalue.com

Insider Cow
This site tracks real time insider transactions.  Here is a snippet from their home page: “Insider behavior matters because research based on real-time signals has shown that a properly modeled picture of insider actions can provide the most accurate reflection of the prospects for the company, industry, economic sector, or even the stock market in general, going forward.”  www.insidercow.com

Morningstar (most of what you need is free)
This is another site that has an excellent reputation.  I have a paid subscription to this site mainly for their target price assumptions, analyst opinions, and I also utilize their 4-5 star rated Stock Screener with that paid subscription.  However, most of the info I use on this site is part of their free sited.  If you type in a name of a company or ticker and go to the summary page, you will see a tab that says Key Ratios and another that says Financials.  If you own any mutual funds, you can also see how much those funds are gauging you with the internal sales charges.  This is where I do most of my research outside of the company annual and quarterly reports.  www.morningstar.com

S&P Capital IQ (free with a TD Ameritrade account)
This site offers an 8-page report on most companies.  In the report they provide you with a summary of the business, analysts risk assessment, a 12-month Price Target, a current fair value estimate and value rank based on a 1-5 scoring system, technical assessment, industry outlook, annual high/low PE for 10 years, and a lot of additional financial data.  I use this report on every company I analyze.  Get this for free at www.tdameritrade.com if you have $1 in an account with them.

Seeking Alpha (free site)
This isn’t so much a Value Investing site as it is an investment opinion site.  Get stock ideas from professional writers and investors as well as amateurs.  I like to read some of the articles written by amateurs because they are not biased or in the pockets of the companies that they are writing about.  As with any idea that you get from an independent source, always take their opinions with a grain of salt and do your own research.  I like the text alerts I get from SA.  I have my current holdings saved in “My Portfolio” and anytime a news event or story is written about that particular company, I get a text alert.  It helps me keep track of my holdings on a daily basis.  www.seekingalpha.com

Tip Ranks (some free stuff)
Let’s be honest, most analysts are terrible.  They are either afraid to piss off a company by writing a bad but honest opinion about them if their firm has an investment banking relationship with that firm, so you will not always get an honest opinion.  Worse than that, most analysts haven’t got a clue on how to value a business.  I have read countless articles where an analyst puts a sell rating on a company AFTER a 20% decline, or a buy rating AFTER it has appreciated by 20% or more.  If you know how to value a company, you would be out before a steep decline and in before it become overvalued again.  Fortunately, we can now sort out the incompetent analysts from the ones who are very good at what they do.  Tip Ranks follows 15,000 analysts and ranks them based on how successful they have been with their recommendations.  You can do a search for the top rated analysts or you can do a search for a specific company and see who is covering them and what they have to say about that company.  They also have the average analysts target price and consensus rating, which I like to look at too.  www.tipranks.com

 

Recommended Books:

The Intelligent Investor – Benjamin Graham

The Little Book that Beats the Market – Joel Greenblatt

You Can Be a Stock Market Genius – Joel Greenblatt

Value Investing – From Graham to Buffett and Beyond – Bruce Greenwald

The Dhando Investor – Monish Pabrai

One Up on Wall Street – Peter Lynch

Rule #1 – Phil Town

The Street Smart Guide to Valuing a Stock – Gary Gray

The Essays of Warren Buffett – Lawrence A. Cunningham

The Investment Checklist – Michael Shearn

Quality of Earnings – Thornton L. O’Glove

The Options Strategist – Marc Allaire

A Random Walk Down Wall Street – Burton G. Malkiel

Security Analysis – Benjamin Graham

Financial Statements Demystified – Bonita Kramer

Common Stocks and Uncommon Profits – Philip A. Fisher

The Law of Attraction – Esther and Jerry Hicks

 

IF YOU ARE GOING TO PAY FOR ANY OF THESE SERVICES, MAKE SURE YOU SET UP YOUR BUSINESS SO YOU CAN TAKE ADVANTAGE OF BUSINESS RELATED TAX WRITE OFF’S.  I AM NOT A TAX PROFESSIONAL SO TALK TO A QUALIFIED ACCOUNT REGARDING SETTING UP THE PROPER STRUCTURE FOR YOUR BUSINESS.