balance sheet ratios

20 Balance Sheet Ratios Every Investor Must Know

February 19, 2017 | Read Now

There’s only one reason why I continue to hold the majority of my portfolio in US stocks.

Reporting and transparency requirements by the SEC rocks.

Without it, calculating the below balance sheet ratios would be a nightmare.

The following list of ratios can be applied to both the public and private sector. At Old School Value, we apply these ratios to help discover undervalued stocks to invest in. It makes a big impact by helping you avoid falling knives and value traps.

Here we go.

Let’s get straight into the 20 balance sheet ratios to help you determine the financial health of a company.


Product News: 2 Majestic Screener Updates

February 17, 2017 | Read Now

Screen using Fair Value and Margin of Safety

I was against it, but many of you wanted it.

After all, it’s your tool.

My reason against screening using margin of safety or valuation still stands.

It should be part of the qualitative process, not the quantitative.

I still firmly believe you’ll grab onto too many value traps so proceed with caution and always remember that the default numbers are not 100% reflective of company’s current state.

Watch this short 2 min video of how it works.


Old School Curated Links and News (Feb. 13th Edition)

February 13, 2017 | Read Now

This week’s reading list is packed.

When stocks are mentioned in articles or newsletters, I like to check it first against the Action Score and start from there. An easy way to decide whether to investigate further or not.

Stocks mentioned in the articles: FL, AXTA, CATM, CMG


Does it Pass the Sniff Test?

February 8, 2017 | Read Now

A quick way is to first eliminate a lot of the junk out there with a sniff test.

A sniff test is the same as a simple checklist.

The purpose is to build guardrails so that you don’t step into dangerous territory.

It doesn’t work out as well because value investors get attracted to cheap stuff and growth investors get attracted to charismatic managers and glamour stories.


19 Biases Causing You to Look Foolish and Make Bad Decisions

February 6, 2017 | Read Now

If you invest, you have one goal in mind.

For your investments to be profitable.

What you and I can also agree on is that we don’t like being fooled by ourselves or others. We certainly don’t want to make bad decisions.

But we do it all the time.

Over and over again.

And many people refuse to do anything about it.


Product Update: Customizing the Screener to Your Needs

February 2, 2017 | Read Now

Ahoy!

We’ve released a highly requested feature to the Old School Value Online Screener to make it even easier on your workflow.
You want to be able to view data that you prefer instead of having to stick with the default settings or whatever I set as the default list.

Currently there are 9 different results settings to view the stocks that show up in the screener. But not a fully customizable feature.

Most likely, the data you want to see is different to the next person.


Bejamin Graham Formula Adjusted Version

How to Value a Stock with the Benjamin Graham Formula

January 30, 2017 | Read Now

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.


Warren Buffett’s Formula for Valuing All Assets

January 17, 2017 | Read Now

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.).


The 2017 Action Score Portfolio That Will Beat the Market

January 16, 2017 | Read Now

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)


Beating The Market With 20% Returns. Reviewing Our 2016 Stock Grader Portfolio.

January 12, 2017 | Read Now

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.

Ready to try Old School Value?

TEST DRIVE THE DEMO TODAY
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