Monthly Archive for August, 2007

Big Moat Calculator & Spreadsheet Update

A new version of the Big Moat Calculator & Spreadsheet has been released. I’ve made a handy little addition to the sheet that will provide a link to the Yahoo! chart for the stock that is already configured with the Big Moat settings. After the analysis is run for the stock, just click the link and it will launch your default internet browser and automatically bring up the web page with the chart.

Is Whole Foods a Big Moat Company?

Whole Foods (WFMI) was one of the stocks that big-moat used often as an example in the Big Moat book. Here we are a few years later and the outlook for WFMI has changed a lot. We’ll start by looking at the 2 year chart.

WFMI - 2 Year Chart

Looking at the chart shows an obvious downward trend which means we’re not going to be going long anytime soon. But maybe this means the stock is getting close to the margin of safety price. Take a look at the Big Moat analysis for WFMI below, click the thumbnail to view the full size image.

WFMI - Big Moat Analysis

The numbers are OK, but not great. Equity growth was non-existent over the last year. But still, if this is one you’ve been following for a while and you understand the business, it might still be on your list for an investment. You’re just waiting for the price to have that margin of safety and for the trend to start back up.

The real question though, and this is the main reason for this post, is what about management? For years, the Whole Foods management was seen as the cream of the crop, but now it has become public that the CEO was posting negative comments in message boards about Wild Oats, a competitor, for years. This certainly isn’t something negative to the degree of cooking the books like Enron, but is it enough to make you question an investment in Whole Foods?

Two Stocks trading lower than the MOS price

The market has had some wild rides both up and down lately, luckily Big Moat investing takes into account 10 years of history to judge whether a company’s worthiness. If you’ve been having trouble finding Big Moat companies then there is some good news, two companies on the current Big Moat Numbers list are trading below the margin of safety price.

Get the current Big Moat Numbers list

Are you a Big Moat Turtle?

I recently read a book on stock trading that I feel is a perfect complement to Big Moat Investing because it addresses some very important factors when trading. The book is Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders

The author, Curtis Faith, was part of a group called the Turtle Traders who were put together to see if anyone could be taught to be a successful trader. Curtis turned out to be the most successful Turtle even though every person was given the same education. This book describes the education everyone received, but more importantly, it tells why many were not successful. The main factor that caused people to not be successful was their inability to control their emotions and accept being wrong. This book addresses this concept in a way that I feel will be very beneficial to everyone looking for success with their Big Moat investing.

Way of the Turtle - Curtis Faith