Free Cash Flow Uses: How to Decode This Most Important Metric
Most investors obsess over earnings. But here’s the truth: earnings don’t pay dividends. Free cash flow does. Free cash flow is the money left over after a company pays its bills and invests in equipment, inventory, and growth. It’s the cash a CEO can actually deploy—to reward shareholders with dividends, buy back stock, pay down […]
How Warren Buffett Calculates Intrinsic Value (Without Fancy Formulas)
Warren Buffett talks about intrinsic value all the time, but he’s never once handed investors a neat little formula. In fact, if you read through his letters or watch his interviews, you’ll notice he explains the idea beautifully—then leaves the math up to us. According to Charlie Munger, Buffet’s business partner: “Warren often talks about […]
Stop Overcomplicating ETFs: The Only Checklist You Need
With more than 2,000 ETFs or exchange-traded funds available in the U.S. alone, choosing the right ETF might seem like picking out the best coffee at the grocery store. How do you know which one is the right one for you? ETFs have come a long way since being introduced in 1993, and there are […]
Free Cash Flow Yield – Finding Gushing Cash Flow for Future Growth
Cash is king, and free cash flow is the oil that keeps the engine running. Determining free cash flow and understanding its various uses remains one of the best ways to identify great companies that can grow well into the future. Free cash flow yield is an especially simple and effective metric for finding those […]
Find Quality Companies with Buffett’s $1 Retained Earnings Test
Buffett created a test every investor can use to find wonderful companies. Most refer to the test as “Buffett’s One Dollar Test,” which helps us find companies that generate continuing value creation. In today’s post, we will learn: Okay, let’s dive in and learn more about Buffett’s One Dollar Test. What is Warren Buffett’s One […]
BVPS: How to Calculate It (w/ Real-Life Balance Sheets)
The book value per share (BVPS) ratio compares stockholders’ equity to the total number of outstanding shares. In other words, a company’s net assets (assets minus liabilities) on a per‑share basis. Value investors have long used BVPS to help assess whether a stock is cheap relative to its underlying assets, tying into Benjamin Graham’s idea […]
Strategic Asset Allocation: The Critical Decision for 90% of Returns
“You should have a strategic asset allocation mix that assumes that you don’t know what the future is going to hold.” Ray Dalio Today we will explore strategic asset allocation and the benefits it can offer investors. Most investors spend most of their time agonizing about what stock to buy or whether or not to […]
Competitive Advantage: How to Find Sustainable Moats
“If you build a better mousetrap, the world will beat a path to your door.” Ralph Waldo Emerson As investors, searching for companies with a competitive advantage continues as a never-ending goal. We all desire to find a company that can last forever, retain its long-term advantage, and grows our wealth. I never tire of […]
What Warren Buffett Teaches Us About Capital Intensity Analysis
“We still love a business that takes very little capital, and earns high returns, and continues to grow, and requires very little incremental capital.” ~ Warren Buffett Determining and understanding the capital intensity of a business will help you find great investments. A crucial aspect of business analysis involves examining the business model. The analysis […]
Navigating Stock Market Volatility: A Guide for Beginners
The stock market is down, and your portfolio might be too. But here’s the truth: every market correction has been an opportunity to build wealth—if you know what to do. In this post, I’ll share three key strategies for navigating and overcoming market volatility. We’ll summarize key concepts covered elsewhere on our blog, so you […]
