Posts From Ross Heart

Ross Heart
Ross Heart is the operator of Heart Capital, a small investment company he founded in 2004. Ross entered the financial industry in 1993, working at Merrill Lynch for a number of years, before starting an investment operation for a community-owned bank. He has degrees in Economics and Finance, and enjoys competing with Wall Street from Northern Wisconsin, where he feels he can tackle some of life’s most important pursuits with his wife and two children. Ross has served on boards at his Alma Matter, kid’s school, local chamber of commerce, and city, and has written an investing column for a regional newspaper. Heart Capital’s investment approach is a value-based, tactical one utilizing individual securities and provides the ultimate in transparency for clients.
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Tax Returns: One Valuable Tip That No One Is Talking About

You’ve either just completed your tax returns, or maybe you’re still working on them. Somehow, it seems like we’re always in one of those two camps during tax season (and perhaps afterward if we need to file an extension). As a value investor, I’m frequently on the prowl searching to identify favorable stock valuations, but I’d like to take this opportunity to point out an overlooked personal finance tip, where

5 Reasons Value Investors Should Avoid ‘Sum Of The Parts’

Value investors are always on the search for clues. Seeking out undervalued securities involves relentless digging, scratching, and a myriad of valuation techniques to derive conclusions. In frothy markets, value managers are also notorious for spotting red flags and smoke signals urging caution. I’d like to share one of those signals with you. As a value manager, there is no phrase that makes me shudder more than “sum of the

Inflation, Deflation And The Inflationistas Ironic Victory

Seinfeld: “Aww, you’re crazy” Kramer: “ Am I? Or am I so sane that you just blew your mind?” Somewhere in America, a very observant 11-yr old passenger is asking her Dad, “why is gas so cheap?” As oil prices continue their descent early in 2015, countless explanations for crude’s drop have surfaced, yet my takeaway gets prompted by the keen eye of a younger generation more accustomed to seeing

How Much Future GDP Has Been Stolen By Fed ZIRP?

A few months ago, an entity I’ve been associated with was contemplating a major purchase to replace an older piece of machinery. The current asset was certainly usable and far from obsolete, but the “research” undertaken to evaluate the cost-effectiveness of a new model proved a bit startling. The scrutiny to purchase fell to a simple analysis: that there was enough money available to make the purchase sitting in cash-equivalent

Is A Market Top Forming? 6 Things To Watch For

In the stock market, there seems nothing more romantic than someone ‘calling’ a market top. At some point we’ve all likely succumbed to making our own ‘call’, eventually wising up and yielding to the grizzled veteran approach of insisting that market tops are indeed a process and not a particular point. This post is not a ‘call’, but if I were to go looking for the process, the following 6 items would

A Financial Conversation With Millennials

A young couple recently put me on the spot asking for financial advice as they began their journey in life together. Did I have any words of wisdom? I stumbled, bumbled, and stammered unable to give any semblance of a cohesive answer. All I could think of was the mountain of college debt they likely had, the unaffordable housing that stares them in the face, the changes their generation of

Investor Questions: Trying To Solve The 2014 Financial Market Riddle

Entering 2014’s second half, a number of investor questions and random thoughts are swirling around in my head. In an effort to put together some of the market’s puzzle pieces, and to try to get a grasp on an increasingly difficult environment to decipher (and invest in), I’m asking myself a number of market-related questions. And I’d be curious to know yours as well. Here’s my list: Can you remember

5 Investment Surprises For 2014

Let me preface my list of investment surprises for 2014 by alerting you that these are in no way whatsoever to be considered recommendations. This list was compiled with the element of surprise in mind so the likelihood of them actually occurring should be viewed as such. In the event of their occurrences, however, each would have obvious investing implications. Here goes: 5 Investment Surprises For 2014 1)     Apple (AAPL) unveils a blockbuster and/or

Twitter Tips For Investors: Maximize Returns, Avoid Pitfalls

Investors have tagged the now publically-traded Twitter, Inc. (TWTR) with a near $40 Billion market capitalization as we enter year-end 2013. Yes, it’s been mentioned by some in the context of a bubble, and many have questioned that market cap in light of current losses and sketchy prospects for profit going forward. BUT, the fact remains that its popularity, usefulness, and importance for investors has only grown. And with this

Premium Price Bubble May Soon Hit Consumer Demand

On the very first day of Economics 101, you will see the below chart. This simple illustration identifies (in theory) the optimal price of a product (P), where the supply curve of a good (S), intersects the curve representing the range of consumer demand (D). Basic yet essential. Over my past few posts I’ve highlighted a few trends to put on your radar screen through the remainder of 2013 –