About
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST ~ Benjamin Franklin
About Building Benjamins
Built for Investors by Investors
Building Benjamins is a free investment newsletter. We combine stock picks from proven investors and our founder who has been twice named PSN manager of the decade and has invested professionally for over a third of a century. We select quality stocks with good prospects, so you do not need to wade into the clutter of television and the internet. We are not technicians, micro-cap stock proponents or traders in stocks, options or cryptocurrencies. We are long-term investors in stocks of good companies.
Stock Picks to Build Income and Wealth
High conviction stocks owned in a proven pro’s own portfolio or researched by professional investors. Invest in companies for years based on business value drivers, such as:
Innovative Products
Great Brands
Exponential Networking Effect
Dominant Distribution
Exceptional Resources
Essential Patents
Formidable Research and Development
Skillfull Management and Leadership
These qualitative business attributes determine the success of a company and stock over the course of years and decades. These qualities drive quantitative financial metrics like revenues, earnings, cash flow, return on capital, and return on equity. Financial statements are like report cards. How is our company doing? Over time the stock will reflect how the company and its financials are performing.
Growth Trumps Value Every Time
Valuation is always important. Growth is always more important. Growth will determine whether a company is more valuable in five years than it is today. Growth in the financial metrics like earnings and free cash determine what a company will be worth. Growth determines value. Companies whose stock price is below its intrinsic value are good buys, as long as they have sustainable growing businesses.
Growth Provides Higher Retirement Income and Wealth
A stock of a company with a 4% yield growing at 9% can be a spectacular buy for an income or retirement investor if purchased at the right valuation; which is a stock price below its intrinsic value. In eight years, the dividend will have doubled, and if the stock yield stays at 4%, the stock will have doubled as well. The importance of growth, even for income investors, cannot be overstated.
Growth Drives Business and Stock Values Higher
Growth in revenues, earnings and free cashflow are determined by the quality of the business. Big winners in “Growth Stocks”, more than 12% growth, and “Hypergrowth”, more than 20% growth, are determined by the qualitative business fundamentals. Valuation is less important than the level and duration of the high growth. For a company with 25% growth for ten years, todays purchase price does not need to be precise because the compounding effect of “Hypergrowth” will result in the company being 9.3 times larger in ten years than it is today. This does not mean you can buy it at any price, but it does mean you can buy it at a multiple of the valuation of an average stock.
Learn More About Our Founder Benjamin C. Halliburton, CFA.
Helping you build retirement income and your family’s wealth with wise stock picks delivered to your email or phone for free by our proven team.
For more information about what we do, get in touch with us today. We look forward to hearing from you.