On Thursday, I told you about the advice Warren Buffett is all too happy to offer, but most investors seem to ignore.
Today, I'm going to share with you -- in the hopes that we can all heed his words a little more closely -- the seemingly "magic" formula he uses to consistently beat the market.
Ready for it?
Stuff minus debt.
That's it. That's the golden ticket.
That's how an investor can determine the intangible value of a business.
A lot of people try to make this more complicated than that, but it's really not.
After all, the accountants are not trying to trick anyone: Each line is exactly what it says it is. "Cash" is self-explanatory. "Inventory" is stuff. "Receivables" are unpaid bills sent for goods delivered or services rendered. And so forth.
10 Best Warren Buffett Stocks To Invest In 2014: Headlam Grp(HEAD.L)
Headlam Group plc, through its subsidiaries, engages in the sale, marketing, supply, and distribution of floor covering and other ancillary products. It primarily offers carpets, residential vinyl, laminate, wood, and vinyl tiles. The company provides its products to independent flooring retailers and contractors in the United Kingdom, France, Switzerland, and the Netherlands. Headlam Group plc is headquartered in Birmingham, the United Kingdom.
10 Best Warren Buffett Stocks To Invest In 2014: Ifg Group Ord Eur 0.12(IFP.L)
IFG Group plc, together with its subsidiaries, provides financial services primarily in Ireland, the United Kingdom, Isle of Man, Jersey, and Cyprus. It offers pensions administration services; independent financial advisory services to individuals, companies, charities, and other trusts; trust and corporate, and fund administration services; and administration and advisory, as well as personal financial and retirement planning services. The company is based in Dublin, Ireland.
Top Stocks To Own For 2014: Reed Elsevier(REL.L)
Reed Elsevier PLC provides professional information solutions worldwide. The company?s Elsevier segment offers scientific, technical, and medical information solutions. This segment publishes science and technology research articles and book titles; and abstract and citation database of research literature, as well as offers information and workflow tools that help researchers generate insights in the advancement of scientific discovery. The Elsevier segment also provides medical journals, books, reference works, databases, and online information tools to medical researchers, doctors, nurses, allied health professionals, students, hospitals, research institutions, health insurers, managed healthcare organizations, and pharmaceutical companies. Its LexisNexis Risk Solutions segment offers data and analytics for the insurance industry; risk management, identity verification, fraud detection, credit risk management, and compliance solutions for financial institutions; invest igative solutions; and employment-related, resident and volunteer screening services. The company?s Lexisnexis Legal and Professional segment provides legal, tax, regulatory, and business information solutions. Its Reed Exhibitions segment organizes exhibitions and conferences for the broadcasting, TV, music, and entertainment; building and construction; electronics and electrical engineering; alternative energy, oil, and gas; engineering, manufacturing, and processing; gifts; interior design; IT and telecoms; jewelry; life sciences and pharmaceuticals; marketing; property and real estate; sports and recreation; and travel sectors. The company?s Reed Business Information segment provides data services, information, and marketing solutions to business professionals; produces industry critical data services, lead generation tools, and online community and job sites; and publishes business magazines. Reed Elsevier PLC was founded in 1894 and is based in London, the United Kin gdom.
10 Best Warren Buffett Stocks To Invest In 2014: Ecs Holdings Limited (E18.SI)
ECS Holdings Limited, an investment holding company, engages in the distribution of information and communications technology products and services. The company�s Enterprise Systems segment offers enterprise systems tools, including middleware, operating systems, Unix/NT servers, databases, storage, and security products for information technology (IT) infrastructure. Its IT Services segment is involved in the IT infrastructure design and implementation, training, maintenance, and support services. The company�s Distribution segment distributes IT products, such as desktop PCs, notebooks, handhelds, and printers for the commercial and consumer markets. It also engages in the retail of IT products and equipment, and accessories. ECS Holdings Limited distributes its products in Singapore, China, Thailand, Malaysia, Indonesia, and the Philippines. The company was founded in 1985 and is based in Singapore. ECS Holdings Limited is a subsidiary of VST Holdings Limited.
10 Best Warren Buffett Stocks To Invest In 2014: Low & Bonar(LWB.L)
Low & Bonar PLC engages in the manufacture and supply of performance technical textiles and technical coated fabrics to civil engineering, carpet manufacturing, leisure, construction, building products, industrial, print, architecture, and transportation sectors worldwide. Its performance technical textiles comprise synthetic nonwovens for flooring, automotive, and construction applications; three-dimensional polymeric mats and composites for civil engineering, building, and industrial applications; geotextiles, agrotextiles, technical industrial textiles, and fibers for industrial and building sectors; carpet backing yarns for the woven carpet industry; artificial grass yarns for sports surface and landscape industries; and woven fabrics and specialist yarns. The company?s technical coated fabrics include trailer side curtains and transport protection products; printable fabrics for large format advertising; architectural fabrics for permanent and temporary building stru ctures; coated fabrics for storage and containment; and coated fabrics for sun shading, boat, pool, camping, and sports applications. Low & Bonar PLC was founded in 1903 and is headquartered in London, the United Kingdom.
10 Best Warren Buffett Stocks To Invest In 2014: Helios Advantage Income Fund Inc. (HAV)
Helios Advantage Income Fund, Inc. is a close ended fixed income mutual fund launched and managed by Brookfield Investment Management Inc. The fund invests in the fixed income markets of the United States. It invests a majority of its assets in below investment grade debt securities, which are bonds rated Ba1 or lower by Moody's Investors Service, Inc., BB+ or lower by Standard & Poor's Ratings Group. The fund benchmarks the performance of its portfolio against the Barclays Capital U.S. Corporate High Yield Index and the Barclays Capital Ba U.S. High Yield Index. It was formerly known as RMK Advantage Income Fund, Inc. Helios Advantage Income Fund, Inc. was formed on November 8, 2004 and is domiciled in the United States.
10 Best Warren Buffett Stocks To Invest In 2014: Polaris Minerals C Com Npv (PLS.TO)
Polaris Minerals Corporation engages in the development and operation of construction aggregate properties and projects. The company holds an 88% interest in the Orca Quarry, a sand and gravel project, which covers an area of approximately 350 hectares of land located in the northwest of Port McNeill, British Columbia; and a 70% interest in the Eagle Rock Quarry project, a granite resource that covers an area of approximately 339 hectares situated on deep tidewater alongside the Alberni Inlet near Port Alberni, British Columbia. It serves various customers involved in concrete manufacturing in North America and Hawaii. The company has a strategic alliance with Cemex, Inc. for the development of a terminal and quarry. Polaris Minerals Corporation was incorporated in 1999 and is headquartered in Vancouver, Canada.
10 Best Warren Buffett Stocks To Invest In 2014: Proam Exploration Corporation (PMX.V)
ProAm Explorations Corporation engages in the exploration and development of mineral, and oil and natural gas properties in Canada and the United States. It holds interests in the Samuel Lake mineral project, located to the west of the town of Atikokan, Ontario. The company also has working interests in various oil and gas wells located in Pennsylvania, Arkansas, Oklahoma, Ohio, and West Virginia, the United States; and Alberta, Canada. ProAm Explorations Corporation was founded in 1997 and is based in North Vancouver, Canada.
10 Best Warren Buffett Stocks To Invest In 2014: Fab-Form Industries Ltd. (FBF.V)
Fab-Form Industries Ltd. develops, manufactures, and distributes fabric-based technology to form concrete footings, foundations, and walls for building structures. The company manufactures forming products using poly membranes to form and damp-proof concrete. Its products include Fastfoot footing forms, Fastbag point load footing forms, and Fast-Tube column forms. The company operates in Canada and the United States, and Europe. Fab-Form Industries Ltd. was incorporated in 1995 and is headquartered in Surrey, Canada.
10 Best Warren Buffett Stocks To Invest In 2014: Nicholas Financial Inc.(NICK)
Nicholas Financial, Inc., through its subsidiaries, operates as a specialized consumer finance company. The company engages in acquiring and servicing contracts for purchases of new and used automobiles and light trucks. It also makes direct loans and sells consumer-finance related products. In addition, the company engages in developing, marketing, supporting, and updating industry-specific computer application software for small businesses located primarily in the Southeast United States. As of April 5, 2011, it operated 56 branch locations in 14 Southeastern and Midwestern states. The company was founded in 1986 and is headquartered in Clearwater, Florida.