Everest stock price ended 2005 at $10.68
Everest stock price ended 2006 at $17.30
The gain for 2006 after fees was 61.99%.
Tuesday, February 13, 2007
Monday, November 20, 2006
Everest Investments Results
Everest Investments
The goal of Everest Investments is to provide it's share holders with a return greater than the general market.
- Everest Investments started in November 2004
- As of November 12, 2006 the book value gain realized by Everest Investments is 94.12%.
- In the same period the S&P 500 has realized a gain of 17.50%
Monday, May 01, 2006
Benjamin Graham Speaks
Benjamin Graham Speaks
"I have no particular confidence in my powers - or anyone else's - to predict what will happen with the market."
"If I have noticed anything over these 60 years on Wall Street, it is that people do not succeed in forecasting what's going to happen to the stock market."
"Those factors are significant in theory, but they turn out to be of little practical use in deciding what price to pay for particular stocks or when to sell them."
"To my mind the so-called growth-stock investor - or the average security analyst for that matter - has no idea of how much to pay for a growth stock, how many stocks to buy to obtain the desired return, or how their prices will behave."
"In 44 years of Wall Street experience and study, I have never seen dependable calculations made about common stock values, or related investment policies, that went beyond simple arithmetic or the most elementary algebra. Whenever calculus is brought in, or higher algebra, you could take it as a warning signal that the operator was trying to substitute theory for experience, and usually also to give speculation the deceptive guise of investment."
"The thing that I have been talking about so much is applying a simple criterion of the value of a security. But what everybody else is trying to do pretty much is pick out the Xerox companies, the 3M's, because of their long-term futures or to decide that next year the semiconductor industry would be a good industry. These don't seem to be dependable ways to do it. There are certainly a lot of ways to keep busy."
"An investment operation is one which, on thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative."
"There are two requirements for success in Wall Street. One you have to think correctly; and secondly, you have to think independently."
"I have no particular confidence in my powers - or anyone else's - to predict what will happen with the market."
- Graham when asked where the market was headed in 1976
"If I have noticed anything over these 60 years on Wall Street, it is that people do not succeed in forecasting what's going to happen to the stock market."
- Graham on predicting the future of the stock market
"Those factors are significant in theory, but they turn out to be of little practical use in deciding what price to pay for particular stocks or when to sell them."
- Graham when asked about using projected earnings and market share for evaluating stocks
"To my mind the so-called growth-stock investor - or the average security analyst for that matter - has no idea of how much to pay for a growth stock, how many stocks to buy to obtain the desired return, or how their prices will behave."
- Graham when asked about investing in growth stocks
"In 44 years of Wall Street experience and study, I have never seen dependable calculations made about common stock values, or related investment policies, that went beyond simple arithmetic or the most elementary algebra. Whenever calculus is brought in, or higher algebra, you could take it as a warning signal that the operator was trying to substitute theory for experience, and usually also to give speculation the deceptive guise of investment."
- Graham on calculating intrinsic value
"The thing that I have been talking about so much is applying a simple criterion of the value of a security. But what everybody else is trying to do pretty much is pick out the Xerox companies, the 3M's, because of their long-term futures or to decide that next year the semiconductor industry would be a good industry. These don't seem to be dependable ways to do it. There are certainly a lot of ways to keep busy."
- Graham on methods of selecting stocks for investment
"An investment operation is one which, on thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative."
- Graham on speculation
"There are two requirements for success in Wall Street. One you have to think correctly; and secondly, you have to think independently."
- Graham on keys to success on Wall Street
Thursday, March 23, 2006
Learn To Invest - The Right Way(a.k.a. information asymmetry)
Learn To Invest - The Right Way
Most people take great pride in getting the best deal for their money. Whether they are looking for a new car or a new pair of shoes they want the most they can get for their money. They'll visit different vendors, compare prices, consider alternative options, and after careful deliberation go ahead and make a purchase.
However, when it comes to investing money, they often hand it over to a financial advisor at their local bank or other financial institution without much consideration of what they are getting in return. The main reason for this is what economists have called "information asymmetry". Information asymmetry occurs when one party to a transaction has more or better information than the other party.
The following 5 steps aim to eliminate the information asymmetry between you and your financial advisor and allow you to make the right decision when considering investing your money.
(a.k.a. information asymmetry)
Most people take great pride in getting the best deal for their money. Whether they are looking for a new car or a new pair of shoes they want the most they can get for their money. They'll visit different vendors, compare prices, consider alternative options, and after careful deliberation go ahead and make a purchase.
However, when it comes to investing money, they often hand it over to a financial advisor at their local bank or other financial institution without much consideration of what they are getting in return. The main reason for this is what economists have called "information asymmetry". Information asymmetry occurs when one party to a transaction has more or better information than the other party.
The following 5 steps aim to eliminate the information asymmetry between you and your financial advisor and allow you to make the right decision when considering investing your money.
Is your financial advisor doing a good job?
Investing can be a confusing and intimidating task. That’s why many individuals leave investing up to professional financial advisors. Seems like a reasonable thing to do, but how much value is your financial advisor really adding to your investments?Let’s look at some statistics:
- 80% of mutual funds under-perform the stock market
- The rate of return of the S&P 500 market index for the last three years
was:
- 2003 + 26.9%
- 2004 + 8.9%
- 2005 + 3.0%
- During the 1990s, the S&P 500 provided an annualized return of 17.3%
- The historic annualized market rate of return is 10%
You can beat the market by Value Investing
You can do better than the historic market
rate of return of 10% per year by value investing.
Let’s look at some more statistics:
Question: How was Warren Buffet able to double the market return?
Answer: By Value Investing.
What is Value Investing?
Value investing is purchasing shares in companies with good fundamentals
at a discount. Benjamin Graham, known as the father of value investing,
defined value investing as buying dollars for 50 cents.
This concept of finding companies that are poised to outperform in the
long run and purchasing shares in these companies at a discount is the
key behind beating the market.
How to make a value
investment?
A number of books have been written on this
topic, but value investors still refer back to the classic bestseller
“The Intelligent Investor” written by Benjamin Graham in 1934.
In The Intelligent Investor Benjamin Graham clearly defined a set of criteria a company must meet in order to be considered a value investment.
The main factors to consider are:
The above factors are considered to estimate a company’s intrinsic
value. Investment in a company is considered only if it is trading below its’
intrinsic value. Buying shares in a company below its’ intrinsic value provides the value investor with what Graham termed a “margin of safety”.
Investing in companies with a margin of safety is the golden rule that has produced superior results for value investors.
Everest Investments
The goal of Everest Investments is to provide its’ share holders with a return greater than the general market. We propose to do this by following the time tested and proven techniques of value investing.
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