The Prudent Speculator
Published by John Buckingham at Smashwords
Copyright 2012 John Buckingham
Smashwords Edition, License Notes
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We put together two separate diversified listings of a dozen of our most undervalued purchase candidates for each of John Buckingham’s 2012 San Francisco MoneyShow presentations, Value of Dividends and Time for Value. The union of those lists appears below with each stock trading for a significant discount to our determination of long-term fair value and/or offering favorable risk/reward profiles. Note that, while we always seek substantial capital gains, we require lower appreciation potential for stocks that we deem to have more stable earnings streams, more diversified businesses and stronger balance sheets. The natural corollary is that riskier companies must offer far greater upside to warrant a recommendation. Further, as total return is how performance is ultimately judged, we explicitly factor dividend payments into our analytical work.
Broad diversification is a critical component of our investment strategy, so the 24 stocks presented in this space are meant to serve as a portfolio foundation for new investors and as a pick-list for folks already maintaining well-diversified holdings. Diversification, we find, serves us in two ways: by minimizing individual stock risk, while maximizing the likelihood of finding the big winners among the undervalued masses.