Fiduciary Risk Assessment
My goal is to help fiduciaries realize that their primary responsibility as a fiduciary is to protect their clients’ assets from significant losses AND clearly demonstrate that the only effective way to achieve and fulfill their responsibilities is by measuring and rating the probability of a stock falling and remaining low.
Decker Walked All Over Microsoft – 12/31/1999 to 12/31/2024
Several smaller companies outperformed Microsoft from 12/31/99 to 12/31/24. ERS identified these standout performers—Deckers Outdoor, Old Dominion Freight Line and CorVel—through its proprietary low-risk PRI™ (Price Risk Indicator) and FRR™ (Fiduciary Risk Rating) stock ratings. Deckers outperformed Microsoft 118-fold, while the other two stocks outperformed Microsoft by 32-fold and 5-fold, respectively.
Apple Report – Potential for Considerable Price Decline Caused by P/E Compression
Apple's current P/E ratio stands at 40. But what should it be? For Apple, the data suggests that a lower P/E ratio and slower revenue growth are the most likely scenarios. While no one can precisely predict these figures, the table offers a range of possibilities for your consideration.
Kohl’s Report Summary
This report examines significant financial and strategic decisions made by Kohl’s Corporation, shedding light on their impact on shareholder value. While the company has achieved impressive milestones in its retail operations, other aspects of its financial strategy warrant closer examination, particularly regarding stock buybacks and insider activity.
Bad News or Not? How to Interpret the News
Successful investing isn’t just about picking winners—it’s about avoiding losers. Just like spotting warning signs on a used car, investors can use specific tests to identify red flags in stocks that are likely to fall in value. But beware: a clean record doesn’t guarantee success.
If You Don’t Know What You’re Looking For, You Probably Won’t Find It
If you know what you're looking for, you have a higher probability of finding it. So what are we looking for? As fiduciaries, we're looking for companies with a low probability of falling and a higher probability of rising.
Understanding Stock Value with Palantir Technologies’ Net Present Value
Net Present Value (NPV) is a powerful tool for evaluating a stock's intrinsic value by estimating the total value of its future net income and discounting it back to the present. Let’s take Palantir Technologies (PLTR) as an example: what is Palantir worth to an investor today?
A Model of Oracle’s Net Present Value: A Practical Approach to Stock Valuation
Let’s explore Oracle (ORCL) through the lens of net present value (NPV). What could Oracle be worth to an investor right now? Using a model designed to compute the potential net present value of Oracle—or any company—based on assumptions about future revenues and profit margins, we aim to provide valuable insights.
A Christmas Gift for Investment Advisors – A Model of NVIDIA’s NPV
Net Present Value (NPV) is the most accurate method for evaluating a stock’s value. It estimates the current worth of a company by summing the expected value of its future net income, adding a “terminal value” for the company’s value at the end of the model, and discounting those values back to the present. By doing so, investment advisors can estimate whether a company is overvalued or undervalued based on its projected performance.
What Micron Technology Teaches Us About Risk and Opportunity
The problem investment advisors face is the lack of reliable tools to measure stock risk. This gap in risk analysis makes it harder for advisors to protect client assets and make confident investment decisions. Micron Technology (MU) is a clear example of this challenge.