Qais Zakaria: The Investor Who Outperformed the Market by 800%

A fund called the Nomad Investment Partnership had one of the greatest 13-year runs of all-time. Started by investors Nick Sleep and Qais Zakaria, Nomad went on to return 921.1%. Compared to their benchmark, the MSCI World Index, Nomad beat it by 800%+ (performance of 921.1% vs 116.9%). How did Sleep and “Zak” (Zakaria) do […]

Mature Stocks: Dead Money? Or Safe and Reliable Investments? (2 Examples)

Investors can have strong views about mature stocks; the reality is there are tangible pros and cons to these kinds of investments. In a nutshell, mature stocks refer to companies in the “maturation” phase of their life cycle with slower or saturated growth. Usually, they also have huge profits and size. Mature stocks tend to […]

What are Quality Stocks? Do They Outperform? What are the Pitfalls?

Quality stocks are a popular type of stock market factor. Quality stocks are generally defined as businesses with above average growth and low default risk. Based on these definitions, it would sound that quality stocks are always the best ones to own. But that is not always true. As with everything in the stock market, […]

Historical Economic Data: 25+ Years (U.S.)

It’s hard to understand the economy in general, because there’s so much data and it’s so often taken out of context. We will narrow down only the most important indicators of economic development and examine real data published by government agencies to get context on these metrics. Macroeconomic data can be useful in making reasonable […]

The Simple Way to Create Asymmetric Investing Performance

Asymmetric investing performance simply means that your gains are bigger than losses. For example, an investment that could gain 300% or more, but can only lose at most -100%, is an asymmetric opportunity. The truth is, ALL investors in the stock market can receive asymmetric results over the long term because the potential upside of […]

The Rise, Fall, and Rise Again of Warren Buffett’s GEICO Investment

Warren Buffett’s GEICO investment was pivotal for two of the greatest investors of all-time. The history of GEICO’s stock is fascinating, with many ups and downs. This post will discuss the rise, fall, and rise again of GEICO’s stock. It will talk about how Warren Buffett’s mentor, Benjamin Graham, bought GEICO and saw it become […]

What is a Good Number of Stocks to Own?

The number of stocks in a portfolio can have a major influence on your ultimate results as an investor. Because of this, every investor must answer the question: what is a good number of stocks to own? The short answer is that there is no right answer. The much longer answer is that it depends […]

The Meaning of “Fish Where the Fish Are” in Investing

“Fish where the fish are” is a quote by famous investor Charlie Munger to explain the art of value investing. All investors want to buy low, sell high. They want to buy a stock, and sell it some day at a higher price. Taken to the extreme, this core idea represents what value investing is […]

The Top Down Investing Strategy: Pros, Cons, Pitfalls, and a Hybrid Approach

Fundamental investing can take two paths: “bottom up,” or “top down.” One style of evaluating stocks is not better than the other. In fact, there are different types of both bottom up and top down investing within those main camps. And finally, there’s nothing stating that an investor needs to be either top down or […]

Stock Based Compensation Expense and FCF Explained In a Simple Way

Accounting for stock based compensation expense can be tough. The numbers don’t always line up from the income statement to the cash flow statement. Also, stock based compensation (SBC) is either automatically included or excluded, depending on which Free Cash Flow formula you are using (FCFF or FCFE). Over the long term, the real SBC […]