Financial Frameworks is focused on helping value investors integrate their skills and decision-making styles with solid fundamental financial concepts.  This podcast provides a way to determine if an investment is close to meeting a person's criteria for making a solid, possibly exceptional, investment, but must be passed on because, while it is close, something is missing.  Dr. Lehan, the author, is mindful of Warren Buffett's and the late Charlie Munger's admonition that "saying no most of the time" is a perquisite for excellent value investing. The podcast walks through an example ..read more

Financial Frameworks has been discussing what Dr. Lehan sees as difficult tasks when performing value investing.  This podcast outlines his third hardest task, committing to the decision in a way that is self-aware, rational and available for review and future learning.  Dr. Lehan points out Daniel Kahneman's research that proves that we don't always remember things correctly.  Like other Financial Frameworks podcasts, Dr. Lehan focuses on things to do to make the clearest possible decision and learn for better decisions in the future.  ..read more

"How do I know that I am making the right decision?" Financial Frameworks continues its highlights of Dr. Lehan's most difficult tasks by presenting research and suggestions on how to answer that question when making an investment.  This podcst focuses on behavioral finance research that has shed light on how a person learns to trust their judgement and avoid overconfidence  when information is conflicting, or absent, or, as is often the case, just plain confusing.  Financial Frameworks' purpose is to help investors create frameworks that are durable, thorough and solid.  T ..read more

Financial Frameworks is now focusing on two topics: Value investing and how we learn about investing - for the purpose of getting better at it.  This podcast outlines Dr. Lehan's "Four Hardest Value Investing Tasks" - for him anyway, and then discusses his first hard task - insuring a margin of safety in an investment.  After a brief tribute to Charlie Munger - who definitely believed in margin of safety - Dr. Lehan outlines his three basic criteria, then presents three examples of different techniques that are widely, and successfully, used.  This is followed by a problem - the ..read more

Financial Frameworks continues looking for ways to apply margin of safety when selecting investments by looking at Professor Bruce Greenwald's approach to value investing. Prof. Greenwald divides a company into three parts for valuation.  He measures assets first, then current earnings and finally makes future growth estimeates separately. Today's podcast outlines Prof. Greenwald's thinking, the underlying logic and changes in markets that guide his thinking and suggests how you can apply his method.  Because his future growth estimates is so interesting, and more detailed than Disco ..read more

Margin of safety is an important concept, but how do I apply it in practical terms. This podcast shows how value investors like Warren Buffett use Owner's Earnings and the Discounted Cash Flow method to invest. Fancy terms but basic math and sensible thinking. I think you'll find the description of both methods clear and helpful. Financial Frameworks' previous podcast focused on linking your overall investment strategy with two techniques for estimating future stock values or prices. Because Financial Frameworks believes in balancing future growth with safety, I’m following that podcast with o ..read more

Dr. Lehan suggests that the best starting point, and long-term perspective is by building your investing skills on what you already know. How does a person do that? There have to be right ways and wrong ways. How do I translate my general knowledge of business into focused inquiries that accurately assess the value of a company and its stock? Dr. Lehan outlines the steps for one value investing approach to estimate a company's potential and future value.  He also introduces margin of safety -  a critical value investing principle - for a more lengthy review in the next podcast.  ..read more

Successful investing is an interdisciplinary process that starts with what you know; using that knowledge to create good questions to build a durable framework to hold onto your money. Today's podcast examines multiple threads that run throughout Financial Frameworks' podcasts - building on what you know, value investing tips, beginning of March market observations and ESG developments that are unfolding.  Pulling the threads together to create a strong tapestry is what makes successful investing work for individual investors. Peter Lynch has repeatedly said that an individual investor ha ..read more

Environmental, Societal and Governance (ESG) business practices are increasingly an important part of many investors criteria for buying stock. Dr. Lehan looks at four alternative methods to assess ESG, reviews their details in this and three previous podcasts, then recommends a vetting method that does not require a lot of time while being comprehensive. This, and previous podcasts focus on the greenhouse gas element of ESG for simplicity and time sake.  This same process could be applied to other ESG issues.   Dr. Lehan believes that some ESG metrics will grow and become stron ..read more

Financial Frameworks Podcast 25 looks at four ways to measure ESG performance by a company you might want to invest it. Dr. Lehan starts at a high level with the United Nations Principles for Responsible Investing and finishes with the concrete metrics of Key Performance Indicators. The review of these four different approaches will lead to tools to evaluate the ESG information you get in a way that you can use them with individual investments. After all, if you can't use something, what good is it? Value investors balance safety and growth and now ESG factors come into the equation. How to me ..read more