Vacant Home Insurance | Geico Builders Risk | Earthquake Quotes Vacant Home Insurance, Geico Builders Risk, Earthquake Quotes. It may be far better keep a house that is on the industry filled, Especially house insurance.
The Conservative Income Investor | Aside from the usual recommendations to own companies with dominant market positions, strong balance sheets, and high earnings growth, what is something that investors should keep in mind over the next 20+ years of investing that maybe didn't matter as much in the past? My view is that investors should be taking to heart the 1970s recommendations of Peter Drucker who predicted that one of the endings of perpetual technological development is that friction will cease to exist between the original source of a product and the consumer. This means that you should be wary about investing in companies that act as middlemen. Take something like Dick's Sporting Goods (DKS). It's a $5.3 billion company that is divided into 114 million pieces that trade at $47 per share each. It earns a profit of $350 million, or $3.07 per share. The valuation of 15x earnings is pretty low for a company that has ten-year top-line growth of 11.5%, ten-year earnings per share growth of 16.5%, and a valuation of 19-23x earnings during that time. Since the $3 per share IPO in October 2002, the stock has grown a $10,000 investment into $151,000 in just fourteen years. That is especially impressive when you consider that the current valuation of the stock is competitive with the recession-level P/E ratio level and is otherwise the cheapest opportunity to buy Dick's Sporting Goods since the IPO. Yet, when I study Dick's Sporting Goods, there is a limitation on the type of way it should be considered. It's not something like General Electric, Coca-Cola, Colgate-Palmolive, Nestle, or Brown Forman where you can buy the shares, and then set it and collect the dividends for the rest of your life knowing with a high probability that something will be there decades from now. There will come an expiration date for the company because the original source goods--the Nike and Under Armour products that get customers through the door--are now beginning to contact customers directly without the need for a vendor middleman like Dick's Sporting Goods to act as an intermediary to connect Nike shoes and golf clubs to the consumer. At first, I noticed that Nike and Under Armour were beginning to sell their own products directly to consumers online. That was something that would compete with Dick's Sporting Goods, but not necessarily in a mutually exclusive way--it is conceivable to think of a world where Nike and Under Armour's online sales grow while Dick's Sporting Goods also earns a tidy growing profit selling those goods to customers as well. That's because shoes, jackets, shirts, pants, and so on are the type of good you like to see firsthand and get a feel for--it's distinguishable from buying a book on Amazon because there is a certain in-person customization that enough customers will require. But what has bothered me, from the perspective of someone studying the business model at Dick's Sporting Goods, is that Nike and Under Armour have successfully opened their open stores that sell their products directly to consumers. If there is a pair of Nike shoes that you want, why not just go to Nike instead of an intermediary that will have to raise the price enough to own their own keep as well? The coherence of the intermediary's business model takes on a substantial impairment when the end products that a customer desires can be purchased through the end company itself. There are three reasons why a business earns a profit over the long term. You may buy something because it is cheap, you may buy something because it is convenient, and you may buy something because you want the specific product itself. An example of the first category is airlines--unless you belong to a frequent flyer program, you will choose which airline to travel based on price. If Delta tickets cost $139, and Southwest tickets cost $129, you're going to choose Southwest unless there is some other externality weighing on your decision--e.g. maybe you had a bad experience flying Southwest before, maybe the Delta routes are more timely, etc. Absent an intervening externality, price wins out. Convenience is the second moat, and this is the weakest of them all. You might frequent a grocery store because it's by your house--you wouldn't actively choose it based on price, and you don't seek out the grocery store for it's own sake, but it's only a five minute drive away so you go there anyway. And the third type of business is the strongest--when you want the specific product itself. You don't just want shoes--you want Nike shoes. You don't just want soda--you want something sold through Coca-Cola, Pepsi, or Dr. Pepper. You don't just want acetaminophen--you want Johnson & Johnson's Tylenol. Using our Dick's Sporting Goods example, you can see that the profits are built on convenience. People don't want Nike shoes because they bought them at Dick's Sporting Goods; they buy them at Dick's Sporting Goods because that is the most convenient way to get Nike shoes with the immediate knowledge that they fit. This is the type of business model that is the most vulnerable to disruption. It doesn't mean that you shouldn't buy Dick's Sporting Goods--the current price around $47 per share does offer some protection, but it's the kind of company that you may not want to hold beyond five years. A quick 40% pop, or the spotting of a branded company with a similar valuation to Dick's, is enough justification to get out of the company because firms built on convenience exclusively are not inherently meant to be lifetime holdings. This observation usually leads to a follow-up like: So what do you do if you own Wal-Mart stock? There are three things that Wal-Mart has going for it that might distinguish from an investment in a firm like Dick's Sporting Goods. It sells products that don't face competition from the branded source; it has the additional benefit of cost advantages in addition to convenience advantages; and the firm is 50% owned by the Walton family which reduces the inherent conflict of self-interests that exists in a corporation where there is a disunity between management and shareholders. Although Wal-Mart faces convenient and price competition from Amazon, and in some instances, Aldi and Kroger, it still offers enough of a price advantage on a decent number of offerings that it may be the preferred choice of customers not only because it is close by but also because you want to see the oranges and bananas before you buy them and there's probably not a better price if you look elsewhere either. The Wal-Mart business model isn't just built on convenience; it's built on the mixture of cost and convenience. Also, anytime you buy stock in a company, you also face the disadvantage of not fully knowing what's going on inside the company. When you buy a few hundred or a few thousand shares of a billion-dollar corporation, you can't quite measure the management team's survivalist instinct and know the specifics of how that instinct (if it exists) translates into a sound strategy that will serve shareholders well. With the Walton family collectively owning over $100 billion of the company's $214 billion in market value, you can strongly presume that the survivalist instinct exists at the management level (because the Walton family's control of the board permits them to choose officers) so the only unknown is whether the survivalist instinct translates into a strategy that permits shareholders to prosper. It's one set of unknowns instead of a double set of unknowns. The most straightforward way to solve this problem--recognizing that Wal-Mart has a strong cost and convenience advantage but unsure whether it is built to withstand the decades--is to take your Wal-Mart dividends if Wal-Mart is a meaningful position you hold and then invest them in companies that more clearly have generational-holding characteristics. If the Wal-Mart business model is only meant to grow earnings for 23 more years, well, you get at least 92 dividend payments to mitigate that final outcome. But if you're trying to figure out what should be your investing north star for the next two decades, and have concerns about the rate of disruption brought about by technological change, then you should focus on companies where people seek it out to specifically acquire the products that they sell. Strong brands should be your first priority, and can easily fill two thirds of a portfolio. Then, you focus on the low-cost producers in an industry that have some type of cost advantage--companies with the GEICO, Wells Fargo, U.S. Bancorp, Exxon business model. That can take up anywhere from 10% to 30% of your selections. And lastly, you should aim to keep less than 10% of your wealth that is earmarked for long-term business ownership towards those companies that are exclusively about convenience. Those are the businesses most susceptible to shareholder wipeout, and therefore, should be a disfavored investment category.
LOVERN ASSOCIATES LAW LOVERN ASSOCIATES LAW (LAL) - email@example.com) IS AMERICA’S PUBLIC INTEREST LAW FIRM. [NOTE: Prescott Lovern, Sr. (Lovern) now owns both R&L Associates Law and Lovern Associates Law]. LAL is a national firm that litigates nationwide from multiple offices. We work with other plaintiff law firms when needed. We do not pursue frivolous lawsuits or put out Press Releases based on fiction. We can back-up everything we do and say. Our Press Releases are supported by hard evidence and precedent law. [Note: If you need a lawyer, do not contact us, as we only do public interest litigation. If you are a Plaintiff law firm and need help [“Have Legal Pad, Will Travel”], or just looking for a great case to litigate, feel free to contact us. (941)-201-1038]. FOR LEGAL NEWS SEE BELOW and ENJOY READING OUR LEGAL NEWS. We make big and small companies change their policies all the time. We do this to protect you, the Public. Consumers and Investors get defrauded, or have their legal rights violated regularly, you just don't know it. As for all you Perpetrators, don't think we won't sue. We pay attention to the statute of limitations; plus, we legally sell lawsuits. It's just a matter of time before we get to you if you made a decision to ignore us. We stay extremely busy. Also, if you violated criminal statutes, we will not hesitate to file criminal charges, as LAL has just set-up a NEW CRIMINAL DIVISION to go after BANKs stealing money from their credit card customers. State theft statutes are being violated in every state. Directors of public stock banks will be held accountable. DISCIPLINARY COMPLAINTS against unethical lawyers. Prescott Lovern, Sr. President - Lovern Associates Law, loves holding unethical lawyers accountable. Lovern is constantly being maligned by corrupt defense lawyers because they can’t dispute the facts of a case. They always bring up how the federal government attempted to put him out of business because Lovern is pulling back the curtain on the Feds corruption. [Ex: How the IRS is stealing money from taxpayers on every credit card transaction when taxpayers use their credit card to pay federal taxes]. The Obama crowd sent the great JAMES COMEY, back when he was a U.S. Attorney, to get rid of Lovern. They tried to intimidate Lovern into a plea deal. Lovern told them to “shove it,” and took his day in court because he was innocent, AND HE WON, [a two man team, Lovern and one defense lawyer] avoiding a 137 years in prison on pure bogus charges. Lovern expects COMEY to be indicted this fall for leaking classified information and possibly Treason. Lovern is going to sue Obama and his whole criminal gang in connection to credit cards / IRS [See below]. RECAP 2019: LAL is now strategically positioned to engage in LEGAL WAR  with Mastercard, Visa, Discover, American Express (collectively “MOs”) and their member issuing banks over the ILLEGAL Interchange Fee (IF) and Assessment Fee (AF) (collectively “Fees”). No court has ruled the Fees are legal. Two federal Judges have admitted the Fees CONSPIRACY is real. Lovern can take down any MasterCard, Visa, Discover or AMEX credit card issuing bank because LAL is the original source of information for every state under the FCA that includes the Fees Conspiracy. The U.S. DOJ cannot take over any of our cases when filed due to their conflicts. States will get immunity, state employees will not, nor will cities, counties or their employees]. The BANKS, whose credit cards are stealing money from the cardholder, cannot use ARBITRATION as a defense because the Bank[s] do not have a contract with the federal government. Lovern is in control of all these cases [10 year statute of limitations]. STAY TUNED to our LEGAL NEWS for the next big reveal involving massive TAX FRAUD!
Home Former Insurance Company and Corporate Lawyer Now Representing Only Injured Persons and Employees. With over 33 years'' experience, Mr. Prutton is one of the most well-respected, successful lawyers in the East Bay. Call us for a free consultation. We offer contingency fees (no fee unless we win). Since he graduated cum laude in 1982 from one of the leading law schools in the country (The University of Illinois College of Law), Mr. Prutton has specialized in personal injury and labor and employment law. He has successfully represented clients throughout the Bay Area against all of the major insurance companies, such as AAA, Farmers, State Farm, Allstate and GEICO, many of the largest corporations, including Coca-Cola, AT&T, Orkin, Chevron and Safeway Stores, and against many government entities including BART, AC Transit, and the Cities of Oakland and San Francisco. Given his education and wide-ranging experience, and having practiced with two large law firms representing corporations and insurance companies, Mr. Prutton is uniquely qualified to obtain the best and quickest results in all types of personal injury and labor and employment cases. Almost all of our cases are handled on a contingency fee basis. We often advance the costs of pursuing the case. We primarily handle cases in the San Francisco Bay Area, but on occasion we take other cases in California.
Don Joe Auto Body | Collision Repair | Auto Detailing | Tesla Service Center We are your local auto body shop and certified Tesla, Ford, Infiniti, Nissan, KIA, Hyundai, Fiat and Chrysler service center providing collision repair and auto refinishing/ detailing services for all vehicles. We provide Free Estimates and are a direct repair shop for GEICO, USAA and other major insurance providers.
Rebecca Joye - Senior Copywriter | Creative Human Type Rebecca Joye is a talented Senior Copywriter living the sassiest version of herself in the U.S. of A. This online portfolio highlights her near-decade long foray in the gentle art of copywriting--from immaculate conception to execution.