Glad it was helpful, Ceasar!

Hi YT, I haven't looked into PZZA yet, but the reason Comcast came off the list was because one of my final filters is based on consensus future earnings growth estimate : if a stock's earnings aren't forecast to grow 5% or more for the next 12 months, my methodology eliminates it as a potential buy. The reason for this requirement is two-fold: 1) dividend stocks historically raise their dividends 5-6% per year; if a stock's earnings don't increase 5%, there's a decent chance they won't be able to increase their dividend that much, or at all; 2) stocks that historically do the best are ones that raise their dividends. And it just so happens that Comcast's current consensus earnings growth rate for the next 12 months is 4.9%, so it just barely missed the cut.

Thanks for your answer, Professor. Looking forward to next week purchases. And by the way, congrats on TMO; you bought it I think during 2 weeks, released earnings and grew 10%.

That is one of my favorite quotes. I followed it on the Monday you mentioned as well as in 2009 (Great Recession) and March of 2020. Cha ching!

Hi keeennnny, the soothing narrator voice can be a detriment when students are watching my accounting lectures on KZbin late at night (although I blame their sleepiness on the sometimes-dry topic, not my voice 🙃). As for making sales, I will usually sell a stock when it cuts its dividend. I also look to potentially sell it if it's overall rating (based on 4 areas: valuation, quality, dividend-growth in the past, potential for future dividend growth) is no longer in the top 50%. I will also sell it if it's valuation rating indicates significant over-valuation. I could go over this in detail in a course once I figure out a new website platform.

Hi Mundie, I'm currently looking into a new website platform to house all of the strategies, so it may be a bit. I'd like to have a platform that is more mobile-friendly. My current site was developed prior to the smartphone getting popular. If you are a subscriber, feel free to contact me directly with any requests about the classroom portfolios.

It would require a class on how to set it up, import data, and then filter it to narrow down the stock selection. That class is a possibility in the near future.

@@RexJacobsen Thank you!

Hi Draven, Good to hear from a fellow military member. Enlisted or officer? I haven't put these classroom stock portfolio strategies on my BeatTheStockMarket.com website yet because I'm looking into a new internet platform that is more mobile-phone-friendly than my current site. If the new platform works, the first step will be to put the weekly stock purchases of these classroom stock portfolios on the site in "real-time" on Mondays (as opposed to my Sunday KZbin videos which show the picks from the previous Monday). It would also include the total portfolio holdings in detail. Then, the second step, if people are interested, would be to explain how the strategies are done. Excel knowledge would definitely be needed. I'm sure some people could tweak our methodologies and figure out even better versions of the strategies. So stay tuned!

​@RexJacobsen - I'm excited about this too! Can't wait. I'd be happy to share any excel tweaks that I see.

@@RexJacobsen currently enlisted with aspirations to commission. Glad I found this channel though, I prefer no nonsense strategies that help risk averse investors still find solid gains 👍🏽.

Hi Naruto, the holdings in our Dividend-Growth Stock Portfolio are ... AAPL AEP ALB ALLE AMAT AMP APD ASML ATKR ATMU AVGO AXP BBW BK BMY BOWL BR CB CI CMCSA CR CRM CSL CVX DG DPZ DVN EIX ELV EMN EOG EVR EVRG FDS FIHL FMC GDEN GILD GOOGL GS HES HII HSY HUBG ICE INGR INTU IPG ITT KLAC KLG KRT KVUE LAD LLY LMT LOW LRCX MA MAS MCD MCK MCO MDLZ MDT META MLM MS MSCI MSFT NDAQ NEE NI NIC NKE NOC NVDA PEP PHIN PLD PNC PRDO PZZA RJF SBUX SCHW SWKS TMO TNET TRV UNH V VSTS WEC WRB WS YOU

And for our High-Yield Stock Portfolio, the holdings are ... ABBV AEP BEN BK BMY CCOI CQP CVS CVX DRI DVN EIX EOG EPD ETR EVRG FMC GILD GS IPG KMI MDT MS NEE NI PFE PNC PZZA TPR UPS WEC

@@RexJacobsen Thanks a lot!

No, the transaction number is auto-generated by QuickBooks and cannot be edited. If you delete the transaction, the transaction number is not reused.

Thanks, Flo, we miss having you in class!

Hi Logan! Is your goal to learn how we pick stocks? If so, that would entail taking 5 classes and hoping that I'm the one to teach them all. We are looking into different platforms/websites that would allow us to show how we pick stocks while raising money for college scholarships. Stay tuned!

@@RexJacobsen Yes, something in that wheelhouse. I would like to learn more about evalutating companies and interpreting financial reports.

Hi Draven, When trying to determine if a stock is over or under-valued, we want to make sure that our methodology is looking at the company’s future and not ONLY the recent past. This is so we can avoid buying a company whose business is about to tank. For example, if a drug company’s main source of profits is a single drug and that drug is going to go off patent, simply looking at the company’s Price-to-Earnings ratio won’t give you a warning sign. So we don’t use a simple formula that looks at past data to determine if a stock is undervalued; we need to look into the future which involves making estimates. And that’s where utilizing the time and effort of “trusted” analysts comes into play. Their full time job is to look at each individual company’s future outlook, something we obviously can’t do since we start with a database of 6,700 companies. And I say “trusted” analysts because many analysts are NOT independent and are simply courting companies with “buy” ratings on their stock in order to earn that company’s investment banking business (one such analyst company notoriously has a “sell” rating on only 0.4% of the stocks that they cover; when everything is a “buy,” then that company’s ratings are worthless). We are always tweaking our methodology, but for valuation, we currently use the target prices of independent analysts (preferably multiple analysts employing multiple philosophies, such value and growth-at-a-reasonable-price) and combine that with the company’s risk profile to determine the company’s margin of safety (ala Warren Buffett and Benjamin Graham). Margin of safety is important because we’d rather invest in a low-risk stock that is 10% undervalued rather than a high-risk stock that is 13% undervalued. And of course, from there we do a deep dive into the company’s accounting practices to look for red flags/accounting irregularities to hopefully avoid frauds like Enron. And we look at dividend sustainability, growth potential, buy-backs, etc.

Hey Draven, here's an update. We are looking into different platforms/websites that would allow us to show how we pick stocks while also raising money for college scholarships. That would be more cost effective than taking 5 of our accounting classes and hoping that I teach all 5 in order to learn how we pick our stocks.

Yes, it definitely should!

@@RexJacobsenGod Bless you. Also, I think a lot of people would be interested in a video about how to evaluate stocks through accounting principles. I've watched several videos about your portfolios, but you haven't mentioned how you selected these stocks. I should say, the criteria that was used to select stocks.

You're very welcome!

Hi Tom, we occasionally tweak our selection criteria, but I will likely do a video about this in the future. I just have to find the time because there are a lot of different factors involved.

Sounds like the making of a great 5 part series

Hi Old Trucker, we occasionally tweak our selection criteria, but I will likely do a video about this in the future. I just have to find the time because there are a lot of different factors involved.

@@RexJacobsen Okay thanks following your picks but am trying to learn how to fish for Myself

Bargains galore today!

It's a cumulative portfolio. Meaning we deposit new funds each week, so of course the equity curve will go up and to the right even in a bad year like 2022. Even if the return was zero each and every week, the portfolio graph would rise because there are weekly deposits. You can see this for yourself using Excel. For 2022, use Excel and make a chart using an index ETF like SPY and track what a weekly $12.50 investment would look like on a chart. It's an actual Fidelity portfolio, not a backtest.

Dude, you must have missed the fact that they deposit $12.50 each and every week. Either that or you don't understand basic arithmetic. Of course the chart goes up and to the right.

Hi Alex, no, not yet. But it might be a good idea for a future video. Is there anything in particular you are wondering about?

Yes, buy and sell signals are sent via email and are also on the website.

Hi Missouri, I do compare how our strategy does versus an ETF at the 12:19 mark. The ETF is ticker SCHD. Or are you talking about wanting a portfolio of ETFs? If so, any ETFs in particular, or are you (or others reading this) looking for us to come up with a portfolio of ETFs on our own?

Hi Anthony, here is my long-winded answer ... When trying to determine if a stock is over or under-valued, we want to make sure that our methodology is looking at the company’s future and not ONLY the recent past. This is so we can avoid buying a company whose business is about to tank. For example, if a drug company’s main source of profits is a single drug and that drug is going to go off patent, simply looking at the company’s Price-to-Earnings ratio won’t give you a warning sign. So we don’t use a simple formula that looks at past data to determine if a stock is undervalued; we need to look into the future which involves making estimates. And that’s where utilizing the time and effort of “trusted” analysts comes into play. Their full time job is to look at each individual company’s future outlook, something we obviously can’t do since we start with a database of 6,700 companies. And I say “trusted” analysts because many analysts are NOT independent and are simply courting companies with “buy” ratings on their stock in order to earn that company’s investment banking business (one such analyst company notoriously has a “sell” rating on only 0.4% of the stocks that they cover; when everything is a “buy,” then that company’s ratings are worthless). We are always tweaking our methodology, but for valuation, we currently use the target prices of independent analysts (preferably multiple analysts employing multiple philosophies, such value and growth-at-a-reasonable-price) and combine that with the company’s risk profile to determine the company’s margin of safety (ala Warren Buffett and Benjamin Graham). Margin of safety is important because we’d rather invest in a low-risk stock that is 10% undervalued rather than a high-risk stock that is 13% undervalued. And of course, from there we do a deep dive into the company’s accounting practices to look for red flags/accounting irregularities to hopefully avoid frauds like Enron. And we look at dividend sustainability, growth potential, buy-backs, etc.

@@RexJacobsen excellent reply, Prof. Jacobsen - very helpful!

@@RexJacobsen thank you so much for the reply. Really helpful!

Hi Joe, we do both dividend-growth and high-yield strategies. The first portfolio we started (in 2022) emphasizes dividend-growth stocks, but a few high-yielders occasionally make it into the portfolio. The portfolio we started on Aug 1 of 2023 is the high-yield strategy.

@@RexJacobsen Ah! What do you consider high yield? I'm over here investing into BTI and MPW.

@@xJoeKing I consider high-yield to be 4% or higher. My current favorite with a very high yield is EPD. We are also looking for dividend growth as well as capital appreciation, so that eliminates the super-yielders like QYLD

I don't believe so. I think it's a pretty decent turnaround play and you get paid a 5.46% dividend yield while you wait. It's part of our High-Yield Dividend Stock Portfolio. We've made several purchases of it so far for an average total return of 12.02% with an average holding period of 158 days (that's a 30.0% annualized return using Excel's RATE function). Per Morningstar, "After years of restructuring via the spinoff of its consumer unit and the spinoff and merger of its legacy drug portfolio with Mylan, plus recent internal shifts to align the business with the post-covid world, Pfizer is set to be more nimble and innovative. Now past the boom and bust of the covid-19 vaccine sales cycle, and with no material near term patent expirations, the company is poised to generate steadier results."

@@RexJacobsen great reply thank you!

Thanks, Anthony!

Glad to hear that our videos are helpful, Logan!

Thanks, Larry!

Hi Eric, great question. Usually it's just a one-time small investment and then let it ride.

We have a 4-way rating that rates dividend-paying stocks based on 1) valuation, 2) quality, 3) dividend yield and recent dividend growth metrics, 4) Outlook for continued dividend growth. If a stock is no longer in the top 50%, it's on the watch list for possible sale. Also, if a stock's valuation looks extremely over-valued or it looks like the stock price will tank due to a business event, we'll sell. If a person wanted to keep it simple, they could just buy the quality stocks (not the under-the-radar-dividend payers) and hold forever, letting the winners run and letting the occasional losers just become insignificant parts of the portfolio overtime.

@@RexJacobsen Thanks for the answer!!

You're welcome, John!

Oops! Looks like it will be misspelled for next week's video, too, as screenshots were already created. It will get fixed eventually.

Glad you find them to be of value!

I agree 100% that the unpredictable nature of oil prices make it difficult to value oil companies. But we are following a quantitative strategy in this portfolio and it's now dipping its toes into oil co's. It will be interesting to see how it goes. I don't have any book recommendations for evaluating the oil sector in particular, but I do recommend the book What Works on Wall Street for those that are fascinated with numbers/data/quantitative analysis.