Walter Schloss: The Essence of Value Investing - Gurufocus

Walter Schloss: The Essence of Value Investing - Gurufocus

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https://www.gurufocus.com/news/138200/walter-schloss-the-essence-of-value-investing

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Summary:

Two Principles of Walter Schloss:

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(1)

Discount to Book or Net Working Capital.

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(2)

During the company’s temporal bad revenue and earnings hard time, If the speed of stock price dropping is more than the speed of dividends dropping, that will increase the Dividend Yield.

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During Dividend Payout’s Declining aligned with EPS’s Declining :

Pay attention when that happens, and if DY > Inflation Rate (not bond yield rate), it may signal The Floor Price has been reached for contrarian approach, indeed a very deep floor.

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If Dividend Payout is increasing while EPS is dropping, then the DY valuation approach is rendered unreliable.