John Dorfman Columns category, Page 3
John Dorfman: 5 Balance Sheet Powerhouses I recommend
“Winning isn’t everything. It’s the only thing,” said football coach Vince Lombardi years ago. Many investors feel the same way about earnings. Excuse me, Lombardi disciples, but earnings aren’t the only thing. To withstand unexpected hardships or to seize timely opportunities, a company’s financial strength is also key. Once a...
John Dorfman: Bank of New York Mellon and Fox show value, momentum
Last year, momentum stocks were up 46%, growth stocks 36% and value stocks only 12%. As a longtime value investor, I find those figures (from S&P Dow Jones Indices) discouraging, yet also instructive. Let’s define our terms: • Momentum stocks are rising in price faster than the overall market. •...
John Dorfman: 6 cheap stocks with great 5-year returns
For years, my mentor, David Dreman, invested in Westinghouse Electric Co. The stock was cheap, often selling for about nine times the company’s per-share earnings. The stock price marched up nicely, yet the stock stayed cheap, because earnings were rising as fast as the stock price. That’s a value investor’s...
John Dorfman: Can analysts pick stocks? I doubt it
Can professional analysts pick stocks? Don’t laugh. Analysts perform many valuable functions. They ask probing questions of management, estimate earnings and provide a wealth of information on companies and industries. However, a study I’ve been conducting for a quarter of a century suggests they are no better at picking stocks...
John Dorfman: Robot Portfolio gained 22% in 2024
The Robot Portfolio returned more than 22% last year but was edged out by the surging Standard & Poor’s 500. Each year, the Robot — a naive stock-picking paradigm — generates a theoretical portfolio of 10 very unpopular stocks. The idea is that stocks advance by exceeding expectations, and low...
