Welcome to Stock Spotlight!
Let me introduce myself: I am Dillon Jacobs, owner and lead editor of Vintage Value Investing. One of my favorite pastimes is analyzing and valuing companies the old school way.
While writing on my main site, I found myself drifting towards writing mostly about stock valuations. So, in order to maintain high-quality content on my primary outlet, I decided to start this newsletter to allow myself the freedom to write about whichever company I wanted.
Here’s What Stock Spotlight is All About:
Each week I will pick a company to analyze. I will then screen the company by using Warren Buffett’s Four Investing Principles. If you are unfamiliar with what Warren Buffett looks for in a company, then you can check out my article on it here.
Here are Buffett’s Four Investing Principles:
A business that we can understand
A business that has favorable long-term prospects
A business that is operated by honest and competent people
A business that is available at an attractive price
Pretty simple, right? By using this template, we will come out on the other side of each analysis knowing:
An understanding of the company’s business model
Whether the business model is sustainable or deteriorating
If the management is producing or destroying value for shareholders
The company’s valuation
After going through these four principles, I will assign the stock a score depending on how well it screens through the principles. The perfect company will have a score of 4/4, while poor companies will have 0/4.
For the valuation, I will use my own Discounted Cash Flow (DCF) model. While not every company should be valued the same way, I view the DCF model as the gold standard for any stock valuation.
To round out the report, I will also include an article or two that I think are worth checking out, as well as a music recommendation to give you something to listen to while doing your own research.
I view this newsletter as a tool to continue seeking out opportunities, while providing readers with some entertainment. Hopefully I can provide you with an idea or two!
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If you are interested in classic value investing content with a modern approach, then check out my main site Vintage Value Investing.
None of the writers or contributors for Vintage Value Investing are registered investment advisors, brokers/dealers, securities brokers, or financial planners. The information of this article is provided for informational and educational purposes only.
The information is not intended to be and does not constitute financial advice or any other advice, is general in nature, and is not specific to you. Before using this article’s information to make an investment decision, you should seek the advice of a qualified and registered securities professional and undertake your own due diligence.
None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, company, or fund. The company is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.