Educated in engineering, I came to enjoy Value investing while watching Louis Rukeyser’s ‘Wall Street Week’ in the early 1990’s. I’ve spent 20 years trying to understand how the greatest investors operate. As I grew older, my interests expanded into many fields – from philosophy to fitness. This website is my attempt to capture in one place the best ideas I find on a variety of subjects.
How I Invest:
Fundamental deep value stock investing using Free Cash Flow as defined by Buffet’s 1987 shareholder letter. Great companies at good prices. Predictable and undervalued when purchased, sold at their Intrinsic Value based on Discounted Cash Flow analysis. Buy with a Margin of Safety, Sell at Intrinsic Value. Hold cash when nothing is available at my price. Use the Kelly Formula to determine optimum fraction to invest in each stock which maximizes the amount of money you win over a lifetime of investing.
Outside of individual stocks, I have developed my own Asset Allocation model based on a comparison of available investment yields (bond yields, Stock index earnings yields) against the future inflation rate. The model uses a combination of Sharpe Ratio and the Kelly Formula to decide on final allocation to ETF indexes for stocks, bonds, REITS and other available investments.
Thanks for your interest,
Feel free to email me – David[at]HealthyWealthyWiseProject.com – with ideas or suggestions.