Franchise Risk: Two Public Failures Explain the Two Sides of the Story

When it comes to franchise risk, there are two sides to the coin—risk for the franchisee and risk for the franchisor. Whether considering operating as a franchisee or investing in a franchisor, it’s important to understand the intricate differences in these risks. To do that, we will look at two examples of franchise risk gone […]

Competitive Advantage: How to Find Sustainable Moats in the Stock Market

“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 Buybacks King, Henry Singleton, Can Teach Us About Capital Allocation

Before Warren Buffett and his special conglomerate, the compounding machine Berkshire Hathaway, there was a CEO of Teledyne called Henry Singleton—who pioneered prudent capital allocation inside of a conglomerate with stock buybacks and issuance. Henry Singleton was profiled in the excellent book, The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success. In […]

Characteristics of Stock Market Tops – History of the NASDAQ and Dow

It’s so easy to say that “this time is different”; if there’s one thing that’s never different in stock market tops, it’s that people will never stop saying “this time is different”. I’ve started collecting old news articles about stock market tops to remind myself of how to stay grounded in my valuations. Because I’m […]

[Unpopular Opinion]: First, Consider These 4 ETF Disadvantages

There’s no denying that ETFs, or Exchange Traded Funds, have revolutionized the world of investing and made it cheaper, easier, and safer than before. While the advantages of ETFs are many, there are also some sinister disadvantages to ETFs which can creep up on unsuspecting investors. ETFs are essentially baskets of stocks. One popular ETF […]

Can You Get Rich Only by Sector Investing?

I feel like the debate of sector investing is one that has lasted ages and so many people have different opinions on the practicality of it. Truthfully, I think that investing in a particular sector that is primed for a rebound makes a ton of sense, but there’s also some risk involved. For the most […]

How to Find Acquisition Candidates – Two Perfect Real Life Examples

M&A can be a huge value driver for both the acquiror and acquired if it unlocks larger future growth or leads to synergistic cost efficiencies. Add the fact that simple a M&A announcement can catapult shares of the target higher, and investors are incentivized to identify acquisition candidates and invest in them. The problem with […]

Warren Buffett’s Special Situation Investing – A Best Kept Secret

Some of the greatest value investors of all time have used special situation investing to attain superior returns in the stock market. The average investor can also find opportunities in special situations, usually by combining it with stocks that are cheap by value investing metrics. I mentioned Warren Buffett; and I think most people actually […]

Wall Street Bear – Friend or Foe?!

One of the most dangerous things in the investing world is dealing with a Wall Street Bear. If you’re like me and a total CNBC addict, then chances are you’re going to hear all different sorts of opinions, but seriously – the Wall Street Bear is the worst! Investopedia says that, “A bear is an […]

Should Investors Care if a Stock gets Delisted?

With all the fanfare going on in the news about Chinese stocks being delisted from U.S. exchanges, many investors are currently wondering what will happen to their shares… Don’t fret, a stock holding being delisted is not the end of the world, especially for small retail investors with little need for liquidity. This article will […]