Stock market valuations from a Cash Flow perspective are at a curious state
Stock prices as a multiple of Cash Flow

Stock market valuations from a Cash Flow perspective are at a curious state


The 187 Portfolio

The 187 Portfolio was developed in the year 2006. Prior to this date I relied on analyst reports and publicly available news to guide my stock investment decisions. I felt there must be a better way for me to assess, on a comparative basis, one stock choice over another. In designing a set of analytical tools, I focused on operating margins, cash flow growth, enterprise value as a function of EBITDA, Debt levels, Dividend levels, Net Cash, mid and long-term business forecasts, interest rates and the cost of capital. I blended these metrics together to weight one stock against the other and to weigh each stock against the market I had created of 187 stocks. Why 187 stocks? Very simple really. I began by selecting the companies I knew about, then I expanded into industry sectors, then I added diversity to try and represent the macro-market, and I eventually felt I had what I was looking for. At that point I had selected 187 stocks, a number without rhyme or reason, but a stopping point that became the foundation of comparisons and selections for the next 14 years. It is important to note that I track the 187 stocks on a daily basis. I do NOT however own an interest in all 187 stocks within the 187 Portfolio. Presently, I own 29 of the 187 companies.

I hope you learn some beneficial things by reading and digesting the thoughts I share about this portfolio of stocks.

May 7, 2020 Best Y-T-D performers within the 187 Portfolio

Strong performers are so important to our returns on investment. Unfortunately, there are too few with positive returns since 12/31/2019, as the listing above shows.

Keeping an eye on the important metric of price to cash-flow, I find I am not comforted by the expensive state of equities.

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Thomas J Connolly
Thomas J Connolly

Business executive and investor. I cover stocks and crypto-assets at my website thejoyofinvesting.com


Thejoyofinvesting
Thejoyofinvesting

This Blog reflects research on Crypto Assets, Stocks, and U.S. Economic activity. It covers Bitcoin, Ethereum, and LiteCoin, along with 93 token assets representing the business activities of companies within the Blockchain community. Education for those new to Cryptocurrencies, new to investing, new to Bitcoin, and new to the concepts and purpose of Blockchains, are the goals of this Blog. I hope you enjoy your experience here.

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