STE's Stocks Investing Journey

image credit to asymmetryobservation.com Would like to share this great article on the subject of “ Regression to Trend/Mean”: Regression to Trend: Another Look at Long-Term Market Performance <from www.advisorperspective.com>     “About the only certainty in the stock market is that, over the long haul, over performance turns into under-performance and vice versa. Is there a pattern to this movement? Let's apply some simple regression analysis (see footnote below) to the question. Below is a chart of the S&P Composite stretching back to 1871 based on the real (inflation-adjusted) monthly average of daily closes. We're using a semi-log scale to equalize vertical distances for the same percentage change regardless of the index price range.”

image credit to cnbc.com Is it possible to Mimic Warren Buffett's Investment Returns? Every investment manager (or even retail investors like you and me) admires Warren Buffett’s investment returns. But i s it possible to copy Warren Buffett's investment strategy?   W hile most of us desire Buffett’s results and try to mimic his investment approach by reading books written about him and attending courses that try to emulate his strategies. Can we really mimic his investment returns?  The answer is of course  NO.

image credit to dreamstime.com In my last blog post, I talked about “The Power of Free Cash Flow” , the importance of having consistent and sustainable free cash flow for companies which would allow them to pay a dividend or buying back their own shares. Imagine if there is a company that could generate $68 MIL a day , do you think such company exist in world stock market ? Yes!  It's  Berkshire Hathaway (BRK )  and it was sitting on a massive cash pile at the end of 2018 and the cash continues to increase quarter by quarter in billions of dollar.  BRK is sitting with a gigantic cash amount of USD 114 Billion as of 1 st Quarter 2019. For the past 3 years, Berkshire was able to generate Free Cash Flow of USD 25.5 Bil /year (on average) and this will translate to about USD 69.8 Million / Day.