Value Stock Geek Interview: Cheap and Good Balance Sheet ($MU, $BDL, $DKS)

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• Follow his work on Twitter: @ValueStockGeek
• Check out his website:
  • ValueStockGeek.com

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You can find out more information by listening to episode 11 of this podcast.

Show Outline: Interview with Value Stock Geek

The full show notes for this episode are available at https://www.diyinvesting.org/Episode49

Part 1: ValueStockGeek's Investing Process

• Basket of Stocks (20-30 positions)
• Value: Cheap Stocks with Good Balance Sheets
• Uses multiple valuation ratio's but prefers "Acquirer's Multiple"
  • EV/EBIT
  • See Tobias Carlisle's book: The Acquirer's Multiple
• High portfolio turnover 50-100% churn every year
• Why the Quality factor reduces your returns
• How to improve your stock-picking success rate by focusing on the balance sheet

Part 2: Example Stocks

• Micron Technology ($MU) - Cheapest stock in the S&P 500
• Flanigan's Enterprises, Inc. ($BDL) - A microcap company that owns bars, restaurants, and liquor stores in Florida
• Dick's Sporting Goods ($DKS) - A retail company focused on the niche of outdoor sporting goods equipment