June 5, 2017

Insider Ownership

  High insider ownership is something commonly associated with value investors. The idea behind it is rather simple. If the management owns a large portion of the company, then they are incentivized to perform well – benefiting not only themselves but the shareholders as well.  The other side of that coin is that owners may not listen to the advice of people within the company, using their position as majority shareholder to push for things the company wouldn’t do otherwise. Let’s take a look how companies with higher insider ownership have performed compared to companies with low insider ownership.

  For this first screener, I screened for companies whose insiders hold a controlling share (>51%) of the company’s stock.…

June 7, 2016

Making Steady Returns with Oil

Oil has been an incredibly volatile investment over the past twenty years, resulting in around 13% annual growth as an industry with a standard deviation of well over 7%. As a value investor the idea of investing in companies that can be seen as necessities to our current way of life is incredibly attractive, however, I need to figure out how to negate a certain amount of risk that can be see with this industry.

Here is the oil industry(Drilling and midstream) plotted against the S&P 500 over the past twenty years.

I’ve recently spent some time reading up on Kristian Siem(put link here), and I’ve decided that for this strategy I will be focusing on only drilling and midstream oil companies.…

May 19, 2015

Broken Bonds Bollix Retirement

Are bonds broken? Can one make money in bonds, and can one do it in today's low interest environment?