Rule One Investing Blog

I’ve been looking at some of the stocks in my watch list. One of these is Cold Water Creek (CWTR).
Coldwater Creek is a specialty retailer of Women’s clothes and apparel. With two main segments retail and direct. Let’s take a look at the growth rates numbers. The ROIC is 7% last [...]

In my last post about re-analyzing the PE of LOW it occurred to me that I don’t 100% understand PE. In the Book Rule #1 , Phil Town briefly explains PE and how it’s calculated. Let’s start how it’s exactly calculated
PE = Current Price/ Earnings Per Share (EPS)
So if a stock has a [...]

The online stocks seem to be dropping in price as of late. Is the big Google next? Could it be set for a re-valuation of the stock price? Here are some events that have happened this week.
Yahoo Search and other products disappoints and has weak 2008 sales outline - [...]

The big news out of Acceleware today is they have a product for use with the oil industry.  This product should increase the productivity of the oil and gas industry as they’ll be able to determine the correct drilling locations faster.  From the press release:
“Acceleware annouced the launch of its seismic data acceleration solution that [...]

I was looking over my MOS numbers that I calculated and realized that I may have over-estimated my sticker price. Looking back at my post about Rule One Analysis of Lowes the numbers used to calculated the MOS were as follows

Equity = 14% (near typical growth rate)
EPS = $1.98
Future PE = 22 (historical)

This provides [...]

When I first read the book Rule #1 by Phil Town I was very enthusiastic to start finding rule #1 stocks and start making my million. However, after following the three circle exercise I was not pleased to find any stocks that were under the margin of safety (MOS) and were true rule #1 [...]

After reading the first chapter of the Intelligent Investor by Benjamin Graham I realized that maybe I should blog about each chapter. Although, this might be a bit excessive in later chapters I figured it was important for the first chapter.
The first chapter deals with speculative investing compared to intelligent investing. Graham states [...]