What is SP 500 & Why a 2017 Buffet Experiment Leads to FNILX?

The Standard and Poors 500 Index, a U.S. market benchmark, is quoted daily, with institutional and personal investments mirroring its ebbs and flows. In his 2017 Annual Letter to Shareholders, Mr. Warren Buffet shared findings of a financial experiment he conducted between 2008 and 2017. In this experiment, Mr. Buffet quantified the value in passively investing in the Standard and Poors 500 Index compared to having an energetic style. Passively Investing in the S&P 500 delivered a 2.0% better-annualized return. Launched in 2018, the Fidelity ZERO Large Cap Index Fund (FNILX) speaks to Mr. Buffets’ advice of investing in a “virtually cost-free” index fund. In reality, the FNILX Index Fund is cost-free, i.e., no expense ratio, an index fund that looks almost like the Standard and Poors 500 Index.

Once a Bomb Maker, Now an Aristocrat. A.O. Smith.

With almost 60% of U.S households and 20% of Annual Fuel Use, the Water Heater is a piece of technology quintessential to a home. Founded in 1874 and formerly known for its steel frame, bomb-casing, and welding capabilities, Milwaukee-based A.O. Smith Corporation (NYSE: AOS) currently manufactures residential and commercial gas, tankless and electric water heaters. With a current market capitalization of $11.56 billion and 13,900 employees, the company is a Standard and Poors 500 component and a Dividend Aristocrat. In this essay, I examine the Share Price starting 2000 against the Producer Price Index for Domestic Water Heaters against New Houses Sold and the Segment-based Quarterly Net Sales to identify Water Treatment Segment as a new driver for revenue growth. Shares of A.O. Smith have comfortably outperformed the Standard and Poors 500 Index and the Standard and Poors 500 Dividend Aristocrats index while raising dividends.

Impressive Retail Earnings. Walmart is Still So Cheap.

Walmart, Target, Home Depot, and Lowes reported and beat earnings estimates last week. For the past year, shares of Target, Home Depot, and Lowes have received much media attention for their share price performance, and rightfully so. So instead of looking at the three performers, I wanted to look at the laggard, Walmart Inc. In this post, I compare the number of retail locations to the Price to Sales Ratio to gauge the collective and highlight two headwinds that could derive positive results- An increase in SNAP benefits and Walmart Health. Included are four charts- WMT vs. TGT vs. HD vs. LOW Share Price Performance Since Jan 2020, Location Count by State, Net Sales from Q1 19 to Q2 21, and WMT vs. TGT vs. LOW vs. NOBL Share Price Performance Since Jan 2020.