7 Powers Decoded: Strategies for Sustainable Business Success from Hamilton Helmer

Understanding the underlying strategies that propel companies toward long-term success is paramount in the dynamic investment sphere. 7 Powers: The Foundations of Business Strategy by Hamilton Helmer provides investors with a profound framework to evaluate companies through a strategic lens. I aim to adapt Helmer’s insights for investors, focusing on how each of the seven […]

Reading the Numbers: How to Analyze a Stock as a Beginner

Gross margin. Marketable securities. Earnings per share. These are all words you will find on the financial statements of publicly traded companies. Otherwise known as stocks. If you’ve never taken an accounting course, you likely have no idea what these terms mean. Analyzing stocks can be daunting for first-timers. There is foreign-sounding language, confusing SEC […]

8 Steps to Decoding Investment Moats

“In business, I look for economic castles protected by unbreachable ‘moats.’” ~ Warren Buffett, 2007 Shareholder Letter Finding companies with competitive advantages or moats are the Goldilocks of investments. Buffett made himself and his shareholders billions from investments in companies such as Coke, American Express, See’s Candies, and Apple. These companies exemplify moats or competitive […]

What Is a True Luxury Company?

The word “luxury” gets thrown around constantly these days. Marketers, social media influencers, and brand executives use the term because they want customers to believe their products are superior to the competition. And for good reason. Brand power can lead to outsized profit generation and huge returns for stockholders due to the ability of these […]

What Warren Buffett Can Teach Investors 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 […]

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 […]

Decoding the Revenue DNA: An In-Depth Analysis of Revenue Streams

Revenue is the most important factor in investing. And most investors focus on revenue growth and profits. But we should also consider the different revenue streams. These different revenue streams drive growth and prospects. Consider Amazon, who started as a bookseller. Now, they operate in many different markets and sectors, like cloud computing, e-commerce, and […]

Navigating the Storm: Understanding Stock Drawdowns

“The real key to making money in stocks is not to get scared out of them.” -Peter Lynch Drawdowns are a part of life for every investor. If you own stocks for the long run, you will experience them at some point. To hold stocks long-term, we must understand drawdowns, their causes, and how to […]

Understanding Where Investment Returns Come From: Yield, Growth, and Multiple Expansion

Achieving financial success in the stock market demands a profound grasp of the three sources of investment returns: Yield, Growth, and Multiple expansion. But how many of us understand those sources? Think of investment returns like a stew with yield, growth, and multiple expansions as the ingredients creating investment success. In today’s post, we will […]

Unlocking Financial Insights: How the 3 Key Financial Statements Interconnect

“Accounting is the language of business.” Warren Buffett This brief quote underscores Buffett’s belief that a deep understanding of financials and accounting remains essential for investors and business leaders. By “speaking” and “understanding” this language, individuals can make informed financial decisions, evaluate investment opportunities, and assess the financial health of companies. In today’s post, we […]

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