Creativity

Creativity is paramount. Whether a child creatively imagining a new game or an adult developing a new product, creativity is important to keep us alive and progressing.

When I saw this image embedded in an article on Coca-Cola, I immediately resonated. I like Coca-Cola. I love coffee.

This product line piqued my interests. I look forward to the day I can taste and see the beverage. It is fascinating how creatively people can generate value in simple ways by adding basic ingredients.

Coca-Cola is one of the largest companies in the world with a wide array of products. Is it undervalued? With innovation like adding coffee in the mix and population growth, there is an argument toward great intrinsic value.

Corporate value depends on more than understanding and analyzing financial statements. Valuing a company must be accomplished with a holistic approach in understanding numerous data points, insights, trends and other information.

Being creative in securities analysis and corporate valuations is key to comprehensively understanding underlying value.

Keep your thinking cap well fastened to your head when considering the value of any company and next creative steps in unlocking it.

Stocks

Security analysis is the primary way of assessing whether a stock is undervalued. The global stock exchanges are saturated with distressed, fair, neutral, growth, exciting and other undervalued securities. Recently we have reviewed some of the top forty (40) of >400 companies with listings on the Johannesburg Stock Exchange (JSE).

To acquire a copy of the overview review, please contact us.

37 Years Ago, Warren Buffett Explained a Brutal Truth That Most People Never Learn

It’s about what you’re worth, versus what people think you’re worth.

Published by Inc. on 10 April 2021. Author: Bill Murphy, Jr.

“…It has to do with the incredibly high price of a single share of Buffett’s company. I’m writing this on a Friday evening, for example, just after Berkshire Class A closed for the first time at $400,000 a share, making it by far the highest-priced publicly traded stock…”

Article Link: https://www.inc.com/bill-murphy-jr/37-years-ago-warren-buffett-explained-a-brutal-truth-that-most-people-never-learn.html.

Example Cash Allocation

Many people have asked the questions over the years with regard to cash allocations.

The following is an outline of ways to consider gross income.

All is subjective to the respective household. Yet, the basic principles remain in place. 

Cash Allocation Examples

   — Be disciplined. 

   — Stay within needs. 

   — Save cash for wants. 

   — As possible: Zero debts!

I. Give unto GOD

   A. First fruits 2.5%,

   B. Tithing 10%  

   C. Offerings 10%

II. Taxes 

   A. 10-15% long-term capital gains tax depending on domicile,

   B. Trade deals up to 40% tax

III. Basic needs

   A. Food such as groceries

   B. Shelter (up to an example 25% of monthly budget)

     1. Housing

     2. Insurance

     3. Utilities

     4. Maintenance

   C. Clothing

   D. Education

   E. Health

     1. Insurance

     2. Co-payments

     3. Medicines

   F. Automobile

     1. Fuel

     2. Insurance

     3. Maintenance

   G. Other

     1. Childcare needs

     3. Miscellaneous

IV. Longer-Term Financial Planning

   A. Simple savings with 3-6 month living expenses

   B. Example stock market investments

     1. Johannesburg Stock Exchange

     2. United States stock exchanges

     3. Other global stock exchanges

   C. Investments

     1. Pension fund contribution

     2. Private equity opportunities

       a. Full or partial business ownership

       b. Loaning cash to a business

   D. Real properties can be expensive ongoing investments with long-term smaller gains than stocks

V.  Bank and Brokerage Accounts

   A. Bank accounts

     1. Checking for everyday use

     2. Savings

       a. Short-term (example: 3-6 months living expenses)

       b. Medium-term (example automobile)

       c. Long-term (example real property)

   B. Brokerage accounts

     1. Basic brokerage account for stock exchange

     2. Pension brokerage account for stock exchange.

   3. Asset allocation example: 

      a. 25% cash equivalent lower interest money market to benchmark and for liquidity

      b. 25% market index funds to benchmark long growth

   c. 25% blue chip dividend growth stocks

   d. 25% mix of distressed, turnaround, small, and medium undervalued stocks.

In due course I may elaborate on the points above.

Respectfully

Landon 

Welcome

We welcome you to Value77. We hope these resources will augment your investing experiences toward compounding wealth, riches and monies. Our set of tools is meant to enhance your wisdom, knowledge, understanding, discernment, ability to make decisions, productivity, and profitability. We believe when you employ strategies, principles and tactics with the art and science of value investing, then your short-, medium- and long-term goals will be achieved with record returns on investments.

Our goal is to prove zero (0) or negative value. And when we cannot prove zero (0) or negative value, then this means there is likely value. Then knowing there is likely value, we conduct as much due diligence as possible to discern what and how much that value is. It is a comprehensive process worthy of discovering intrinsic values.