balance sheet ratios
20 Balance Sheet Ratios for Fundamental Analysis

We go through 20 must know balance sheet ratios.

Each one of these ratios should be in your arsenal for any fundamental analysis and interpretation.

Understand how topics like solvency ratios, Cash Conversion Cycle, and Debt-Equity ratios play a role in determining the health of a business.

Free download also available as a companion to the article.

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best free stock portfolio tracking spreadsheet
Best Free Stock Portfolio Tracking Spreadsheet

A comprehensive google spreadsheet to track your portfolio. Copy it to your account. Automatically pulls in stock prices along with useful charts to analyze your portfolio.

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changes in working capital, owner earnings and free cash flow
Changes in Working Capital, Owner Earnings and FCF

A breakdown of changes in working capital. How Buffett defines it and how to use it for valuation. Includes a free spreadsheet download to complement the article.

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cash flow ratios for investing
7 Cash Flow Ratios Every Investor Should Know

A list of ratios based on the cash flow statement that every value investor should know. Combine with the balance sheet ratios for power fundamental analysis.

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How to Value Stocks with Ben Graham Formula
How to Value Stocks with the Ben Graham Formula

Learn how to value stocks using a simple formula created by Ben Graham. A quick way to estimate the range of a stock for value investors using growth numbers. Download the companion Graham formula spreadsheet.

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does the magic formula work
Does the Magic Formula Work?

Joel Greenblatt created and wrote about the legendary Magic Formula. Here's our independent research to test verify whether the Magic Formula works in this day and age. The results will surprise you.

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How Warren Buffett interprets financial statements
How Warren Buffett Interprets Financial Statements

A guide to understand and interpret the financial statements. Discusses how Warren Buffett uses it to identify stocks and moats. Refer to the table at the end that summarizes the entire discussion.

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valuing-an-asset
Warren Buffett’s Formula for Valuing All Assets

Excerpt below from Warren Buffett’s 2000 letter to shareholders. Emphasis added.

Leaving aside tax factors, the formula we use for evaluating stocks and businesses is identical. Indeed, the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.).

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2017-portfolio
The 2017 Action Score Portfolio That Will Beat the Market

Here are the rules for the portfolio.

No changes until end of the year, UNLESS a company is bought out and needs to be replaced.
20 stocks @ $5k each for a $100k portfolio
A grade stocks (but can include B if not enough A’s)
No OTC stocks due to many people not wanting or being able to buy them (nothing wrong with OTC stocks though)

OSV-QVG-Action-Score
Beating The Market With 20% Returns. Reviewing Our 2016 Stock Grader Portfolio.

2016 was the first year our Old School Value Action Score that you see on the Old School Value stock analysis software took to the streets.

What is an “Action Score”?

In a nutshell, it’s a set of 9 (mostly value based) metrics used to score a stock between 0-100. Stocks are then graded based on their scores.

The #1 goal of the Action Score is to reduce the time spent trying to find ideas.

If you believe in the 80/20 rule, you’ll see that you tend to spend 80% of your time looking for stocks. Less (much less) than 20% of the time is spent on analyzing, thinking, valuing and learning about companies.

The #2 goal of the Action Score is to utilize a mix of uncommon metrics and fundamentals to create a quantitative strategy for people who are short on time, yet enjoy the DIY investing approach.

performance-results
2016 Free Value Strategies Performance Review

Results are in.

First, I’ll be going over results of the free value stock screeners and then in a few days, I’ll post the results of the Action Score with a breakdown of how each grade did.

I’m also excited to share a report later this month where the Action Score was independently tested to verify the accuracy and expected returns of the Old School Value Action Score.

ap510529037
Ben Graham’s 1932 Forbes Articles

In 1932, Ben Graham became a freelance writer for Forbes during the bottom of the Great Depression.

Talk about timing.

With the economy sinking, it would have been tough to write about stocks will go back up. But true to form, in the middle of crashes and people’s accounts getting wiped out, Graham wrote about why the market was cheap with a healthy dose of common sense and objectivity.

2016-osv-ratings-distribution-chart
Our Market Beating Action Score – How Combining Quality, Value, Growth Metrics Produce the Best Results

An explanation of the Action Score: How the Action score is created using Q,V,G factors; What metrics make up Q,V and G; backtested results showing 20% CAGR over 17 years. Plus a free download of the top 50 Action Score Stocks.

retail-industry-thumb
A Deeper Look at the Retail Industry

The crowd of companies in this section [Manufacturing, Service and Retailing Operations] sells products ranging from lollipops to jet airplanes. Some of these businesses, measured by earnings on unleveraged net tangible assets, enjoy terrific economics, producing profits that run from 25% after-tax to far more than 100%. Others generate good returns in the area of 12% to 20%. A few, however, have very poor returns, a result of some serious mistakes I made in my job of capital allocation. I was not misled: I simply was wrong in my evaluation of the economic dynamics of the company or the industry in which it operated.
—Warren Buffett, Letter to Shareholders 2013


Free resources to discover

Download 3 free stock calculator spreadsheets following the methods we use for our DCF, Grahams Formula and DuPont Analysis.

Understand the value of a stock as well as a deeper dive into how ROE is calculated.

DOWNLOAD THE SPREADSHEETS

value stock screener pre-defined list

Download a PDF of an independent study performed to validate and evaluate the performance of our Action Score Stock Grading and Valuation tool. Statiscal data with easy to understand explanations on how to interpret the data. See how the stock grading system works and leverage the work to pick winning stocks.

DOWNLOAD THE PAPER

Action Score Stock Grader Validation and Test

See how you can leverage the Old School Value stock grading and valuation tool to achieve market beating returns to generate a bigger portfolio. We disclose the 2016 performance and disclose how to piggyback our proven scoring and ratings system.

CHECK THE PERFORMANCE

Action Score Stock Grader Performance

Enjoy our various list of value focused, free pre-defined stock screens.

Based on the ideas of Graham, Buffett, Greenblatt and other strategies.

Updated weekly.

GO TO FREE SCREENERS

value stock screener pre-defined list

A recommended reading list for anyone interested in fundamental analysis and value investing.

Each book is categorized into difficult.

VIEW THE BOOKS NOW

9 value investing blogs that we highly recommend.

Excellent quality with a focus on education.

SEE THE BEST BLOGS

If you are running low on ideas of want to jumpstart your idea brain, check out these sites.

We have collected the best sites that offer quality stock ideas without any sales or being pushy.

SEE STOCK IDEA SITES

From books, to websites, to podcasts, newsletters and more, we list the 60 best investing resources related to value investing you would be crazy to miss.

EXPLORE THE RESOURCES

Ready to try Old School Value?

TEST DRIVE THE DEMO TODAY
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