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.
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.READ MORE
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.READ MORE
I don’t know about you, but selling is my weak point. Maybe I’m too trusting of management or willing to wait through hard times instead of scrutinizing new developments more. Either way, I’ve made plenty of bad decisions when it comes to selling and have lost a lot of money in the process.
I have posted several articles and checklists on when to sell. See below.
It is always easier to read and write about companies that I would buy.
Passing on a company is easy and is recommended by most people. You are told to skip it and move on to a better opportunity.
But I’m learning that it isn’t always the case.
As a member of AAII.com, their July issue had an article “An Insider’s Look at Brokerage Research”. It’s a Q&A with Mike Mayo, a top-ranked bank analyst who wrote “Exile on Wall Street: One Analyst’s Fight to Save the Big Banks From Themselves”. The interview is about analysts are under pressure to offer good recommendations and opinions due to fear of backlash. Something that we have heard about quite often.
I tout myself as a value investor and although there are many variations to the rules of value investing, the basic tenants are the same. We all know what we should be doing, but doing it is another thing.
Knowing some of the error traps associated with value (defensive) investing allows for a plan of action to avoid them. Here are some suggestions that have helped me from time to time:
You could purchase the best stock in the world, but if you buy it at a lofty premium, it is a bad investment.
Vice versa, the stock could be the worst company in the world, but if bought it cheap enough, it could work out to be an excellent and profitable investment.
This is a summary of Mohnish Pabrai’s excellent take on the Yellowstone factor and how you can minimize downside risk.
What You’ll Learn
– Mohnish Pabrai’s value investing philosophy in 2018
– The evolution of the Dhando checklist
– Philanthropy & Pabrai’s strange investment choice
– I said that Alibaba is a no-brainer. Here’s further reasons why.
– Deeper explanation of Alibaba’s potential growth thanks to Amazon.
– The differences between BABA and JD.
– I am long Alibaba and plan to be for a long time as China and the world cannot function without Alibaba.
– Alibaba.com is an international and domestic monopoly.
– Alibaba has permeated through China’s way of living and is continuing to grow across different industries.
– A fundamental look at how Texas Instruments is a Quality & Growth investment at a fair price.
– Growth in their top segment of industrials and automotive is key to their long term business.
– Valuation using 4 different angles has the average fair value at around $126 with the lower end being $100 and upper end being $160.
What You’ll Learn
– It’s not okay to copy Buffet at his stage of investing
– Why Munger thinks that there is opportunity in small companies.
– Valuation, Deep Discounts & Catalyst.
What You’ll Learn
– Sales growth is a key driver of long term stock performance.
– How to screen stocks for sales growth and profit.
– LOW, NVDA, ADBE are 3 stocks that meet the sales and profit criteria with a look at how it’s been achieved.
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 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.
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.
Enjoy our various list of value focused, free pre-defined stock screens.
Based on the ideas of Graham, Buffett, Greenblatt and other strategies.
A recommended reading list for anyone interested in fundamental analysis and value investing.
Each book is categorized into difficult.
9 value investing blogs that we highly recommend.
Excellent quality with a focus on education.
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.
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.