The Stingy News Weekly (03/19/2018)
| "In my whole life, I have known no wise people (over a broad
subject matter area) who didn't read all the time - none, zero. You'd
be amazed at how much Warren reads - at how much I read. My
children laugh at me. They think I'm a book with a couple of legs
sticking out." | |
| - Charlie Munger | |
Stingy Links
Why projects are late
"Whether it's a giant infrastructure plan or a humble kitchen
renovation, it'll inevitably take way too long and cost way too
much. That's because you suffer from 'the planning fallacy.' (You
also have an 'optimism bias' and a bad case of overconfidence.)
But don't worry: we've got the solution." [audio] [Behaviour]
High conviction buybacks
"Buybacks may not be well timed in aggregate, but they have been
timed well (at least, timed at cheaper relative prices) by firms
with high conviction buyback programs. These firms can get lost
in the shuffle because, on average, the cash spent on buybacks
by these high conviction firms represent a minority of the total
cash being spent on buybacks." [Value Investing]
Simple value strategies win
"While relative-value strategies do seem to add value over a
passive index, it appears investors would be generally better off if
they relied on simple P/E-based investing." [Value Investing]
Capex darlings and the myth of long-termism
"part of the allure of buybacks is the signal to shareholders
that management will not fritter away precious capital on dubious
projects" [Value Investing]
S&P/TSX60 Value Screens
| High Dividend Yield Stocks | P/E | P/B | P/S | Yield | | Inter Pipeline (IPL) | 3 | 2 | 2 | 5 |
| Enbridge (ENB) | 2 | 4 | 4 | 5 |
| Emera (EMA) | 1 | 4 | 4 | 5 |
| BCE Inc. (BCE) | 3 | 1 | 3 | 5 |
| Pembina Pipeline (PPL) | 2 | 3 | 2 | 5 |
| TransCanada (TRP) | 3 | 2 | 2 | 5 |
| Shaw (SJR.B) | 4 | 2 | 3 | 5 |
| Power Corp of Canada (POW) | 5 | 5 | 5 | 5 |
| ARC Resources (ARX) | 5 | 5 | 2 | 5 |
| CIBC (CM) | 5 | 3 | 3 | 5 |
| Notes | More Info... |
| Low Price/Earnings Stocks | P/E | P/B | P/S | Yield | | Valeant Pharma (VRX) | 5 | 5 | 5 | 0 |
| Cenovus Energy (CVE) | 5 | 5 | 5 | 2 |
| Metro (MRU) | 5 | 2 | 5 | 2 |
| Teck Resources (TECK.B) | 5 | 5 | 4 | 1 |
| Power Corp of Canada (POW) | 5 | 5 | 5 | 5 |
| Magna (MG) | 5 | 3 | 5 | 3 |
| Barrick Gold (ABX) | 5 | 4 | 4 | 1 |
| Kinross Gold (K) | 5 | 5 | 4 | 0 |
| CIBC (CM) | 5 | 3 | 3 | 5 |
| National Bank (NA) | 5 | 3 | 3 | 4 |
| Notes | More Info... |
| Low Price/Book Value Stocks | P/E | P/B | P/S | Yield | | Crescent Point (CPG) | 0 | 5 | 4 | 4 |
| Cenovus Energy (CVE) | 5 | 5 | 5 | 2 |
| Goldcorp (G) | 3 | 5 | 2 | 1 |
| Cameco (CCO) | 0 | 5 | 3 | 3 |
| Valeant Pharma (VRX) | 5 | 5 | 5 | 0 |
| Teck Resources (TECK.B) | 5 | 5 | 4 | 1 |
| Husky Energy (HSE) | 2 | 5 | 5 | 2 |
| Kinross Gold (K) | 5 | 5 | 4 | 0 |
| Power Corp of Canada (POW) | 5 | 5 | 5 | 5 |
| Imperial Oil (IMO) | 1 | 5 | 4 | 3 |
| Notes | More Info... |
| Canadian Stock Summary | Yield | P/E | P/B | | Power Corp of Canada (POW) | Y | Y | Y |
| CIBC (CM) | Y | Y | |
| Cenovus Energy (CVE) | | Y | Y |
| Kinross Gold (K) | | Y | Y |
| Teck Resources (TECK.B) | | Y | Y |
| Valeant Pharma (VRX) | | Y | Y |
| ARC Resources (ARX) | Y | | |
| BCE Inc. (BCE) | Y | | |
| Barrick Gold (ABX) | | Y | |
| Cameco (CCO) | | | Y |
| Crescent Point (CPG) | | | Y |
| Emera (EMA) | Y | | |
| Enbridge (ENB) | Y | | |
| Goldcorp (G) | | | Y |
| Husky Energy (HSE) | | | Y |
| Imperial Oil (IMO) | | | Y |
| Inter Pipeline (IPL) | Y | | |
| Magna (MG) | | Y | |
| Metro (MRU) | | Y | |
| National Bank (NA) | | Y | |
| Pembina Pipeline (PPL) | Y | | |
| Shaw (SJR.B) | Y | | |
| TransCanada (TRP) | Y | | |
| Notes... |
DOW 30 Value Screens
| High Dividend Yield Stocks | P/E | P/B | P/S | Yield | | Verizon (VZ) | 5 | 2 | 5 | 5 |
| Exxon Mobil (XOM) | 5 | 5 | 5 | 5 |
| Chevron (CVX) | 3 | 5 | 4 | 5 |
| IBM (IBM) | 3 | 2 | 4 | 5 |
| Pfizer (PFE) | 5 | 4 | 2 | 5 |
| Coca-Cola (KO) | 1 | 1 | 1 | 5 |
| Procter & Gamble (PG) | 4 | 3 | 3 | 4 |
| Merck (MRK) | 1 | 3 | 2 | 4 |
| General Electric (GE) | 0 | 4 | 5 | 4 |
| Cisco (CSCO) | 0 | 3 | 1 | 4 |
| Notes | More Info... |
| Low Price/Earnings Stocks | P/E | P/B | P/S | Yield | | Verizon (VZ) | 5 | 2 | 5 | 5 |
| Pfizer (PFE) | 5 | 4 | 2 | 5 |
| Walt Disney (DIS) | 5 | 3 | 3 | 2 |
| Exxon Mobil (XOM) | 5 | 5 | 5 | 5 |
| Apple (AAPL) | 5 | 2 | 2 | 1 |
| JP Morgan Chase (JPM) | 4 | 4 | 2 | 2 |
| Travelers (TRV) | 4 | 5 | 5 | 2 |
| Procter & Gamble (PG) | 4 | 3 | 3 | 4 |
| UnitedHealth (UNH) | 4 | 3 | 5 | 1 |
| United Technologies (UTX) | 4 | 4 | 4 | 3 |
| Notes | More Info... |
| Low Price/Book Value Stocks | P/E | P/B | P/S | Yield | | Goldman Sachs (GS) | 2 | 5 | 3 | 1 |
| Chevron (CVX) | 3 | 5 | 4 | 5 |
| DowDuPont (DWDP) | 1 | 5 | 3 | 3 |
| Travelers (TRV) | 4 | 5 | 5 | 2 |
| Exxon Mobil (XOM) | 5 | 5 | 5 | 5 |
| JP Morgan Chase (JPM) | 4 | 4 | 2 | 2 |
| General Electric (GE) | 0 | 4 | 5 | 4 |
| Pfizer (PFE) | 5 | 4 | 2 | 5 |
| Wal-Mart (WMT) | 2 | 4 | 5 | 3 |
| United Technologies (UTX) | 4 | 4 | 4 | 3 |
| Notes | More Info... |
| US Stock Summary | Yield | P/E | P/B | | Exxon Mobil (XOM) | Y | Y | Y |
| Pfizer (PFE) | Y | Y | Y |
| Chevron (CVX) | Y | | Y |
| General Electric (GE) | Y | | Y |
| JP Morgan Chase (JPM) | | Y | Y |
| Procter & Gamble (PG) | Y | Y | |
| Travelers (TRV) | | Y | Y |
| United Technologies (UTX) | | Y | Y |
| Verizon (VZ) | Y | Y | |
| Apple (AAPL) | | Y | |
| Cisco (CSCO) | Y | | |
| Coca-Cola (KO) | Y | | |
| DowDuPont (DWDP) | | | Y |
| Goldman Sachs (GS) | | | Y |
| IBM (IBM) | Y | | |
| Merck (MRK) | Y | | |
| UnitedHealth (UNH) | | Y | |
| Wal-Mart (WMT) | | | Y |
| Walt Disney (DIS) | | Y | |
| Notes... |
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