Chuck Carnevale

About the Author Chuck Carnevale

Charles Carnevale attended the University of Tampa in the 1970s, and while at UT, his economics professor presented a thesis that stated, "Earnings determine the market price of a publicly traded company in the long run." This idea lodged itself in Chuck's mind and became his life's work. After meeting Julie Carnevale, his wife and business partner, they began working together to develop their ideology based on the idea that earnings determine market price. Together they were graphing thousands of companies when they realized that they had discovered the truth of the thesis that there existed a strong relationship to earnings and market prices in the long run. In 1992, they hired Tim Loudin, an information technology specialist that possessed the programming skills necessary to automate the Carnevale's research needs. Chuck's vision was developed into what is now the F.A.S.T. Graphs™ cloud-based software. F.A.S.T. Graphs™ has become the tool Chuck had been looking for all along. Within a matter of minutes, Chuck could examine the relationship of operating results to price performance on thousands of companies. F.A.S.T. Graphs™ has access to 20 years of the necessary historical data on thousands of domestic and Canadian public companies. The F.A.S.T. Graphs™ tool takes all the hours of manual graphing of business fundamentals and reduces it to seconds, giving you critical information in an instant. This charting tool has been used by Chuck, Julie and Tim for a number of years, and they decided to create an online forum to allow every investor the opportunity to use this unique tool.

General Electric (GE): Important Lessons on Valuation


Introduction

A regular viewer of our FAST Graphs channel has asked me to review General Electric (GE) on several occasions.  His real question is could FAST Graphs have alerted us to the forthcoming pending problems that General Electric suffered back in 2001 or 2003?   The answer is straightforward and would apply to investing in any company.  There is no substitute for comprehensive research and due diligence, and more importantly, for continuous monitoring of your portfolio holdings.

Analyze Don’t React

By continuous monitoring, I am not referring to reacting to every wiggle in the price.  Instead, I am talking about watching the company’s fundamental operating results very closely.  This is primarily accomplished by reading the companies 10K’s and 10-Q’s as they are released.  However, it’s also important to pay attention to any major press releases or significant news that might be going on with the company, its industry or its competitors.

Furthermore, I want to be clear that I am not suggesting that investors react to every bit of noise that often shows up.  Instead, I am suggesting careful and thoughtful analysis.  In other words, don’t react, keep your emotions under control and thoughtfully analyze each situation.  What you should be trying to do is determine whether a given situation is a permanent or potentially significantly disruptive occurrence or is it simply a temporary interruption that will not impact the company long-term.  Finally, recognize that this cannot be accomplished with perfect insight.  On the other hand, careful analysis can help you avoid the most egregious long-term fundamental deteriorations.

FAST Graphs Analyze Out Loud on General Electric:

 

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