Frequently Asked Questions
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1) What are FireRock Research and the FireRock Element®?
FireRock Research is a Washington State limited liability company (LLC), based in Seattle, Washington. FireRock Research is an investment research company that provides a proprietary formula to clients on a subscription basis. The FireRock Element® is based on a proprietary investment system which offers a conservative, quantitative assessment of a company’s Main Street valuation. The FireRock Element® is the result of a complex blend of growth and value analysis.
2) How does the FireRock Element® work?
Click to go Inside the Element.
3) Why should I use the FireRock Element®?
The FireRock Element provides original, accurate, cutting edge quantitative analysis, and takes the guesswork out of investing. The FireRock Element® reflects the sell price of a stock (or company) on Main Street (real performance value) when we believe the company has reached its maximum value. When a portfolio is assembled from stocks having an attractive FireRock Elemen®t, the portfolio should consistently out perform because stocks are chosen on the basis of stringent quantitative and qualitative research, and not on the basis of market capitalization. Our primary goal in developing the FireRock Element® is “Capital Appreciation through Capital Preservation.”
4) What does Capital Appreciation through Capital Preservation mean?
The theory tries to pinpoint what may be a good time to allocate resources to high quality stocks and when to liquidate such positions when they are overbought. The “FireRock Element®” was designed for the Conservative investor and the theory of FireRock Investing is based on taking the best of what Qualitative and Quantitative Analysis have to offer and molding them into one powerful analytic tool. FireRock Investing was designed to find a proper balance between Capital Appreciation and Capital Preservation.
5) How do I use the FireRock Element®?
Since we are a research firm, we do not dispense investment advice, however, our research has shown that our subscribers should look closely at FireRock Element® percentiles at 66% or less. If stocks have FireRock percentiles of 100% or above, they should be avoided. Any FireRock Element that states “0″ and “0%” require the subscriber to do more research in regards to the company. Generally if the Element falls in the category of “0″ and “0%”, the company has probably had a one time event such as an asset sale that has affected their earnings and skewed their results. It would then require our subscriber to find out what that one time event was prior to making any investment decisions. Click here to go Inside the Element and learn more.
6) Is the FireRock Element® all I need to select a stock?
No. The FireRock Element® is the quantitative aspect of stock selection. The investor must perform due diligence on stocks having an attractive Element to determine if there are additional (qualitative) factors: company-specific, industry-specific, or more global in nature which may serve to enhance or undermine the selection of a company having an attractive Main Street valuation. It is the responsibility of the subscriber to perform due diligence on those companies which are attractive from a qualitative point of view. The FireRock Element® is a tool to assist the subscriber in selecting stocks for further analysis.
7) What is meant by Main Street vs. Wall Street, and how is the FireRock Element® affected?
The price you pay when you buy a stock is based on Wall Street’s expectation for the future of a company. This is measured in terms of price on the stock market or as price per share when you enter the stock quote. On the other hand, the Main Street price is based on the true performance of the company as it does business in the real world, and on the numbers it generates versus its shares outstanding. When a stock outperforms on Main Street and underperforms in the stock market, this represents a potential investment opportunity since the stock is frequently undervalued. The FireRock Element® specifically identifies this type of opportunity.
8) FireRock Research is a research company. What does that mean?
Since we are a research firm, we do not dispense investment advice.
9) What is FireRock Research’s background?
To learn more about FireRock’s background visit the History page. Our research-to-date can be found by going Inside the Element to view testimonials, case studies and trend reports on the Performance page of the site.
10) Why so many references to Mr. Warren Buffett?
Warren Buffett is one of the most successful investors of modern times. Our director of investment research has spent more than two decades studying the strategies, methods, and investing style of Mr. Buffett, as well as dozens of other money masters, in order to develop the proprietary financial ratios which form the basis of the FireRock Element®.
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12) Is the answer to your question not provided here?
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