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 […]
From Investments to Cash: Decoding the Cash Conversion Ratio
Cash conversion is a key concept in investing. It helps investors determine how effective they are at translating earnings into cash. It also helps us better understand the liquidity of the business. Terry Smith of Fundsmith uses it to help him identify quality companies. In today’s article, we will learn: Okay, let’s dive in and […]
8 Steps to Reviewing a Company’s Earnings: A Step-by-Step Guide
Every quarter, public companies allow investors inside their financials in the form of quarterly earnings. The dance between analysts and the company helps investors learn about the goings inside Google, for example. A glimpse into the company’s operations and financials helps investors determine many things. For example, we can learn what might impact the company’s […]
How to Distinguish Between Luck and Skill in Investing
When we succeed in investing or life, we tend to attribute success to skill or hard work. But when things go wrong, we tend to blame bad luck. Well, which is it? In business, investing, or sports, distinguishing between luck and skill can be challenging. We all love stories and want to understand the relationship […]
Demystifying EVA: A Game-Changer in Assessing Business Performance and Creating Shareholder Value
“A company creates value when the present value of the cash flows from its investments are greater than the cost of the investments. In other words, one dollar invested in the business becomes worth more than one dollar in the market. Discounting future cash flows makes sure the investment is attractive relative to the capital’s […]
Investment Terms Everyone Should Know
Updated 9/3/2023 If you are new to investing, all the terms and jargon might seem overwhelming. But today’s post will help you learn some of the more common terms used in investing. Remember, learning to invest is like eating a pizza; you have to eat it piece by piece, and eventually, you will have it […]
How To Research Stocks (for Beginners)
“Never invest in a business you don’t understand.” So you decided to invest in stocks but don’t know where to start? Think of researching stocks like buying anything, a car, dishwasher, home, or T.V. You can decide solely on the specs, listen to experts’ opinions, or dig in and do it yourself. If you are […]
Demystifying the ISP Industry: A Beginner’s Guide to Internet Service Providers
Understanding the ISP (Internet Service Provider) industry is crucial for investors. ISPs are the backbone of our digital world, connecting us to the internet and offering various online services. By studying the ISP industry, investors can make informed investment decisions. To invest in the ISP sector, knowing how ISPs operate, their services, and their market […]
Exploring the Value Chain for the Pharma Industry
Investing in any sector/industry can offer many different challenges. You can often come across a company you like but find another in the value chain you like better. The pharma industry is not different. For example, we can work backwards in the value chain from a company like Novo Nordisk and find other potential investment […]
