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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Altman Z Score Useless? Here’s Why I’m Still Using It

The Altman Z score is useless.

It’s outdated.

It no longer works.

That’s what these reports argue. They say that the Altman Z Score is dead and here is an honest limitation of the model.

And another really good pdf report on why the Altman Z model does not work for turnaround companies. Really?

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Trusting Management and the Limitations of Research

No matter how much due diligence you perform on a company there will always be blind spots and risks. Even the CEO can’t know and predict everything. Some risks and facts are knowable and others just aren’t.

Let me illustrate my point with some examples:

7 Cash Flow Ratios Every Value Investor Should Know

When it comes to doing a liquidity or solvency analysis, using the cash flow statement and cash flow ratios is a much better indicator than using the balance sheet or income statement ratios.

Gross margins are important but it doesn’t tell you whether a company can survive or not.

The PE isn’t much help too.

Unfortunately, cash flow statement analysis gets pushed down to the bottom of the to do pile, but not here. Read on.

Old School Curated Links and News (April 18th Edition)

I can’t help but get excited when looking up cheap stocks.
With net nets, you associate it with Graham, don’t forget that Buffett was a prized student of Graham’s.

So it’s actually interesting to see a real example of Buffett’s Net Net Working Capital calculation to value Dempster Mill in 1961.
(see image below of how Buffett did it)

stock portfolio tracking spreadsheet
The Best Free Stock Portfolio Tracking Spreadsheet using Google Drive

A stock portfolio tracker using Google Drive with advanced functions than your average tracker. Get it for yourself.
A project that I’ve always had, was to improve on my stock portfolio tracking spreadsheets.

During this time, I’ve probably used 10 or so different portfolio trackers, but nothing met my needs. I don’t do complicated transactions, but still, nothing could really satisfy me.

But those four long years have passed, and I believe I finally have a version that will serve my needs and fulfill its purpose for a long time.

H&M – How to Analyze a Retail Fashion Company

The story of H&M goes back to 1947 when Erling Persson – father to Stefan Persson (Chariman of the Board) and grandfather of current CEO Karl-Johan Persson – opened the first store. Since then, H&M has grown and expanded its business internationally. At the end of its latest full fiscal year in 2015 it operated a total of 3,924 stores in 61 different markets around the globe with total sales of 181 billion (fiscal year 2015). As of 31 August 2016 the group had 4,135 of which 176 were franchise stores.

net nets overvalued market
How to Screen for Cheap Net Net Stocks in an Overvalued Market

Hot markets, cold markets, and everything in between.

Cheap net net stock will continue to exist.

The quality of net nets change depending on the market temperature, but they are there – like hobbits hiding in the roots of trees.

As I showed previously, one way to gauge market sentiment is to leverage the number of net nets existing at any one time.

A simple and very clear indicator of when a market is cheap and when it’s not.


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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