Analyzing a Balance Sheet: 10 Metrics Every Investor Must Know
Analyzing a balance sheet is like peering under the hood of a car; it reveals a company’s inner financial workings and health. The balance sheet gives you insight into management and business strength. For investors, understanding the balance sheet is crucial for making informed decisions. This article takes a practical approach by focusing on Amazon, […]
How to Create a One-Pager for Stock Analysis
When diving into the world of investing, one of the most effective tools you can master is the creation of a one-pager for stock analysis. Creating a concise document allows you to quickly grasp the essentials of a potential investment and make informed decisions. In today’s post, we will learn: Okay, let’s dive in and […]
Risk Management For Beginners
When you invest your savings, you are taking on risks. This is an unavoidable fact for investors. Even if your entire portfolio is United States treasury bonds, you are still taking on some level of risk, no matter how small. The hope is that any potential rewards in the form of wealth creation outweigh these […]
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 […]
