First Marblehead – a Value But Not for Light Hearted

I've been a big fan of First Marblehead's (FMD) stock for couple months now, and it looks like an incredible value today, trading somewhere around 7-8 times earnings.

First Marblehead – a Value But Not for Light Hearted

I’ve been a big fan of First Marblehead’s (FMD) stock for couple months now, and it looks like an incredible value today, trading somewhere around 7-8 times earnings. Though I have to mention this stock is not for the light hearted, as it has a lot of myths surround it.

Tom Brown, who I am very proud to have as my book endorser, wrote a harsh but wonderful piece today dispelling a lot of myths surrounding FMD. In addition, the company has no debt, 15% of its market cap is in cash and it has been growing earnings 30-50% a year. Its margins will likely compress going forward, thus its growth may decline from its past levels, but it should be in double digits.

Oh, did I mention FMD just raised its dividend to 3% yield?

Please read the following important disclosure here.

Enjoyed this read?

Share it with someone who’d love it too!

Related Articles

A Value Investing Lesson from the Blackjack Table

A Value Investing Lesson from the Blackjack Table

Over a lifetime, active value investors will make hundreds, often thousands of investment decisions. Not all of those decisions will work out for the better.
Q&A Series: Diversification and Position Sizing in Investing

Q&A Series: Diversification and Position Sizing in Investing

Today's excerpts from Q&A session I held in Omaha focuses on crucial investment strategies: diversification and position sizing in investing.
The Hidden Advantages of Investing from NOT New York City

The Hidden Advantages of Investing from NOT New York City

What are the hidden advantages of living away from “noisy” investing centers like New York? 

Money Managers Are Not Factory Workers

One of the biggest hazards of being a professional money manager is that you are expected to behave in a certain way.

Leave a Comment