Every fourteen years, the purchasing power of the U.S. dollar is cut in half due to inflation, states billionaire investor Ron Baron, chairman of Baron Capital. Furthermore , he said that he was “amazingly bullish” on the market and was buying assets “every day.”
Owner earnings (OE) is a valuation method detailed by Warren Buffett in Berkshire Hathaway’s annual report in 1986. He stated that the value of a company is simply the total of the net cash flows (owner earnings) expected to occur over the life of the business, minus any reinvestment of earnings.
Owners’ earnings, also known as cash flow for owners, remains one of the more accurate measures of how much money we can make from an investment and helps calculate intrinsic value.
The formula for owners’ earnings is as follows:
OE = Net income + Non-cash charges – Maintenance Capex +/- Changes in working capital Where the below:
We will use a combination of cash flow statements to find the numbers.
To simplify some of this maintenance, the capex is an imprecise number that Buffett didn’t define precisely.
Many suggest different calculation methods; we will use the CF number to simplify.
Using $MSFT as our guinea pig for the year ending 2022. Below are the numbers taken from the financials:
Plugging in the numbers for $MSFT, we get:
Owners Earnings = $72,738+$16,260-$23,866+$446 = $65,578
Per share = $65,578 / 7,496 = 8.74
When compared to current P/FCF equals 8.70
Use these criteria to eliminate 95% of stocks:
Revenue growth 12%
Shares outstanding <2%
Net debt to FCF below 5x
Free cash flow growth +15%
Return on Invested capital +15%
Earnings per share growth +15%
12 companies that qualify:
A fasting-mimicking diet is a type of intermittent fasting.
A growing body of research conducted over the past decade or two have suggested that fasting – or abstaining from eating food – for certain periods of time might pay significant health dividends, such as improved weight management, lowered risk of developing type 2 diabetes and a reduced risk of cancer.
Fasting-mimicking is “a low-calorie diet designed to mimic fasting without fasting,” explains Dana Ellis Hunnes, a senior clinical dietitian at UCLA Medical Center and assistant professor at UCLA Fielding School of Public Health in Los Angeles.
The approach effectively “tricks” your body into thinking you’re fasting while you’re actually still taking in some food. The eating period lasts five days, a time span that’s been associated with the benefits of fasting.
The rules of the fasting-mimicking diet are fairly straightforward. You’ll be tricking your body into thinking you’re fasting by removing most of the calories you’d typically eat each day.
The general idea on the fasting-mimicking diet is to consume 800 calories or fewer on fasting days and to adhere to a ratio of macronutrients that are roughly 10% protein, 45% fat and 45% carbohydrates. The fasting period lasts for five days and should be undertaken once per month until your target weight has been achieved.
The diet lasts for five days, and the approach breaks down as follows:
Day 1: You consume 1,100 calories. Of those calories, 11% should come from protein, 46% from fat and 43% from carbohydrates.
Days 2 to 5: You’ll consume just 725 calories per day, with a macronutrient breakdown of 9% protein, 44% fat and 47% carbohydrates.
During each of the five days, you should consume a minimum of 70 ounces of water. This fast period should be repeated once per month for a minimum of three months to achieve optimal results, Dilley explains.
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The phrase “Is the grass greener on the other side?” is a common way of asking if something that seems better or more desirable than one has is so. It is based on the proverb, “The grass is always greener on the other side of the fence”, which means that people tend to be dissatisfied with their situation and always think that others have it better, even if they don’t. The proverb has been traced back to ancient times, but it became popular in English after a song by Raymond B. Egan and Richard A. Whiting in 1924.
The phrase can be used in different contexts, such as relationships, careers, lifestyles, etc. For example, someone unhappy with their marriage might wonder if the grass is greener on the other side, meaning if they would be happier with someone else. Or someone bored with their job might think the grass is greener on the other side, meaning they would enjoy a different career more. However, the phrase also implies that the grass is not greener and that changing one’s situation might not bring the expected happiness or satisfaction. It is a way of reminding people to appreciate what they have and not to idealize what they don’t have. A counter-phrase that expresses this idea is “the grass is greener where you water it, ” meaning that good situations come from the effort and attention you put into them, not from dreaming about them.
“Failure is not the outcome; failure is not trying. Don’t be afraid to fail.” ~ Sara Blakely, Spanx Founder and CEO
There is tremendous value in embracing your mistakes and learning invaluable lessons from them. Failure is nothing to be afraid of.
Sara Blakely, founder of Spanx, said that as a child, her father encouraged failure and as would pose an unusual question to her and her brother over dinner: “How did you fail this week?”
“He encouraged us to fail, and not to be afraid of it,” she told me. “If we didn’t have something to tell him that week, he would be disappointed.”
When Blakely tried out for the cheerleading squad and was “horrible and didn’t make it,” he high-fived her. When she revealed that she lost her campaign for senior class president, he told her that was amazing.
Blakely says she learned to find her hidden gifts in moments of disappointment or error. Instead of locking up in fear when things go wrong, she says people must find the beauty in these moments.
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Failure is simply a matter of an individual’s perspective and mindset.
To be successful in business and life, you must be willing to take risks and, therefore, accept failure. Jeff Bezos, founder and former CEO of Amazon, believed it’s essential to view failures and setbacks “as helpful obstacles that drive learning.”
“Whatever your goals are, don’t give up no matter how hard it gets,” he stated. Great businesses and organizations don’t exist to grow and make money. Instead, they solve societal problems, from tiny issues to giant dilemmas.
The first step to problem-solving involves defining what that problem is. The key is to get to the root of the problem. One of the best ways to discover the root cause of a problem is by utilizing the 5 Whys method. When a problem happens, could you ask why it happened five times? In theory, the last answer should get to the heart of the issue.
Bezos has long encouraged his teams at Amazon and others to take big risks and embrace failures. In 2019, Bezos told Amazon associates: “We need big failures if we’re going to move the needle — billion-dollar scale failures. And if we’re not, we’re not swinging hard enough.”
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According to Jeff Bezos, it’s essential for an entrepreneur to “be a missionary,” you “can’t be mercenary,” meaning that you have to be mission-motivated, not money-motivated.
“Missionaries build better products and services — they always win,” said Bezos. “Mercenaries are just trying to make money, and paradoxically, the missionaries always end up making more money.”
“Energy is the essence of life. Daily, you decide how to use it by knowing what you want and what it takes to reach that goal and by maintaining focus.” ~ Oprah Gail Winfrey
Mentally strong people have healthy habits and mindsets. They manage their emotions, thoughts, and behaviors in ways that help them keep their power and set them up for success in life, according to Amy Morin, psychotherapist and author of 13 Things Mentally Strong People Don’t Do.
Here are nine ways to keep your power.
1. Don’t waste energy complaining.
There’s a big difference between complaining and problem-solving. Venting to your friends, family, and co-workers keeps you focused on the problem and prevents you from creating a solution. Grumbling not only implies you have no power over your situation but also shows you lack power over your attitude.
2. Accept responsibility for how you feel.
Saying your mother-in-law makes you feel bad about yourself, or claiming your boss makes you mad suggests they have power over your feelings. Don’t let other people’s behavior dictate your emotions. Accept that it’s completely up to you to manage your emotions, regardless of how others behave.
3. Establish healthy boundaries.
Giving in to guilt trips and refusing to speak up for yourself gives power to others. Recognize that you’re in charge of yourself rather than blame others for wasting your time or forcing you to do something. Establish healthy physical and emotional boundaries that give you control over how you spend your time and whom you spend it with.
4. Practice forgiveness.
Holding a grudge against someone who has hurt you doesn’t punish the other person. Instead, it only punishes you. When you waste valuable time thinking about a person you feel wronged you, it takes away your ability to enjoy the moment.
Forgiving someone is the best way to take back your power. But to be clear, forgiveness isn’t about saying what the person did was OK. Instead, it’s about letting go of the hurt and anger that interferes with your ability to enjoy life.
5. Know your values.
When you’re not clear what your values are, you’re at risk of becoming more like a helpless passenger rather than a confident driver in your own life. You’ll be at risk of jumping on board with other people’s ideas, and you may be easily led astray. Take back your power by acknowledging your values and living true to what’s important.
6. Don’t waste time on unproductive thoughts.
Have you ever come home from work and spent the entire evening wishing you didn’t have to go back again tomorrow? Suddenly, you’re giving your eight-hour workday 12 hours of your time. Take control over the thoughts that occupy your mind so you don’t provide more brain power to areas of your life that don’t deserve it.
7. Avoid language that implies you’re a victim.
Saying things like “I have to work 60 hours a week” or “I had no choice but to say yes” infers you’re a victim of unfortunate circumstances. While there will certainly be consequences for your decisions, acknowledge that you always have choices.
8. Make your self-worth independent of other’s opinions.
If your self-worth depends on others holding you in high regard, you’ll likely become a people-pleaser. Not everyone needs to like you, nor must they agree with your lifestyle. You can evaluate the merit of criticism you receive but never allow one person’s opinion to determine your self-worth.
9. Be willing to stand out from the crowd.
Self-doubt and fear can make you want to blend in with those around you. But trying to fit in with the crowd will cause you to disguise yourself as who you are. Trust that you’re mentally strong enough to stand out and dare to be different.
“The greatest discovery of all time is that a person can change his future by merely changing his attitude,” says Oprah Gail Winfrey.
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Nursing home care and medical services are now free to the Greatest Generation (World War II veterans) under a new policy by the Department of Veterans Affairs that waives enrollment fees, copays and monthly premiums for the roughly 119,000 World War II veterans still alive.
The no-cost care is effective immediately under the new VA policies announced Friday. Veterans who served between Dec. 7, 1941, and Dec. 31, 1946, are eligible for the free health care. They must be enrolled in VA health care to qualify.
Veterans turned down previously for coverage are encouraged to reapply, as are those denied coverage because of income eligibility restrictions.