June 13th, 2012
Written by Mark Bern, CPA CFA
This week I once again continued the new series of articles discussing my Master List and the selection process I use to identify quality companies. You are welcome to jump into the series at any place or any time as each article is written to stand well alone and make sense on its own, but you also may find it helpful to read the first article in the series, “The Dividend Investors’ Guide to Successful Investing,” which includes a detailed outline of the process of filtering and eliminating companies to narrow the list down to a manageable level. It includes a discussion of each of my ten rules that I apply to rate each company that makes it through the full screening process.
Follow up:This week’s article in the series “The Dividend Investors’ Guide: Part VII; Beverages, How Much Can the World Swallow?” The comments contain some particularly interesting discussions about specific companies and changes occurring in the industry.
I also wrote another article at Seeking Alpha entitled, “A Great Way to Profit from BP’s Woes.” This article explains my views on the two major headwinds facing BP and how I expect management to deal with them. It also explains a way to us cash-secured puts to pick up shares at a discount if you are interested in owning BP. Finally, in the article I explain why I think that BP is a bargain at the current price. There was an especially interesting investing strategy offered up by one of the readers in the comment section. I’ve looked into the concept and am very impressed. He’s actually found a way to invest with very minimal downside risk.
I have begun writing articles for InvestingDaily.com also and this week’s entry was another article about BP. This time I went into more detail about the problems and what I believe will be the logical outcomes. I also translate these results into what the share price target should be over the next five years. You can find this BP article here.
Looking forward to the coming week I plan to continue my “Master List” series with detail analysis and explanations of why each company survived my rigorous test. I hope you’ll join me and question my assessments. I always enjoy sharing and learning more from others about the companies I own or want to own. I believe the process makes us all better investors.