If a company you own has acquired any other companies in the past 10 years, it will probably have an asset on its balance sheet which is called Goodwill. In fact, the total assets of some companies currently the topics of discussion in the investment club community such as LKQX and TEVA consist of around 40% Goodwill.

Goodwill isn't something you can see or touch so it is hard to measure. It's also something that can jump out and have a significant effect on earnings. Should you be concerned if such a large percentage of the assets a company owns is goodwill?

For the August Club Meeting Meeting we'll talk about what goodwill is, where it comes from, and some things you should watch for if you are investing in companies whose growth is coming from acquisitions.

We're meeting online August 11 at 8:30PM ET. It's free and everyone is invited!

Register Now!

We'll be doing the next quarterly update of QPRR graphs in August. If you're participating, you might want to make sure you have your club records updated through the first of August soon.

If you're not part of the Quest yet, we hope you'll join us. See how your club is doing over time compared to a benchmark and to other bivio clubs. If you join, we'll provide you with a graph like this so you can start monitoring yourselves:

Quest for Positive Relative Returns

All you need to do is email us at support@bivio.com and we'll make the graph for you. It's one of the special perks that comes with being a bivio club. We want you all to be successful investors!

See you online!

Your friends at bivio