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 […]
Using a Checklist to Find Five-Tool Companies
“The trick in investing is just to sit there and watch pitch after pitch go by and wait for the right one in your sweet spot.” –Warren Buffett Warren Buffett is a big baseball fan, as am I, and he uses baseball analogies throughout his writings. He likens baseball to investing in the manner that […]
The Top Down Investing Strategy: Pros, Cons, Pitfalls, and a Hybrid Approach
Updated 5/5/2023 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 […]
Microsoft’s Valuation is Looking Attractive after its 32% Decline
With the S&P down 19.0% from 52-week highs, the correction in the market is starting to get me excited about stock valuations again and putting fresh savings to work in my investment portfolio. Technology companies have taken a particularly hard hit with the Nasdaq down 31.5% over the past year. Microsoft has a strong economic […]
Figuring Out the Right Amount to Spend on Groceries Each Month
Are you trying to figure out where all your money is going each month? Is one of your biggest spending categories at the grocery store? Truthfully, groceries are likely always going to eat up a big chunk of your monthly budget, but that doesn’t mean you shouldn’t zero in on figuring out the right amount […]
How to Value a Stock With a Reverse DCF (with Examples)
Finding the value of a company matters a great deal; some would argue that it remains the single most important item on anyone’s checklist. Figuring out how much the company is worth or its intrinsic value will help you determine your price and what kind of long-term return you might achieve. Using a discounted cash flow […]
How to Use Net Tangible Assets from a Company’s Balance Sheet
Net tangible assets can be a very useful metric for evaluating a company’s future profitability, especially in capital intensive industries. In this blog post, I’ll explain the basics behind net tangible assets and include a few easy and practical metrics for it. We’ll break it up into these simple parts [Click to Skip Ahead]: What […]
Is Value Investing DEAD?? The 2 Reasons YES… and The 2 Reasons NO.
With growth investing absolutely destroying the market lately, people are wondering if value investing is dead. After all, the post-internet economy is much different than the pre-internet, value “hey days”. Just look at the biggest and most popular stocks—Facebook, Apple, Netflix, Google… and don’t forget Amazon and Microsoft. All of those have several things in […]
5 Simple Takeaways from Charlie Munger’s Famous Psychology Speech
The great investor Charlie Munger is known for his mastery of “the art of worldly wisdom,” which combined with his “latticework of mental models” has helped craft his overwhelming success. Part of that includes his lessons on behavioral psychology, as he shared in a famous speech to Harvard University students. This speech by Charlie Munger […]
DCF for Bank Valuation: Step-by-Step Guide with Real-Life Examples
Did you know that the financial industry makes up $8.81 trillion of the stock market cap, which is 13% of the market and is the third-largest by market cap compared to tech and consumer discretionary? Most investors ignore or pass the financial industry by because they don’t understand the industry or value those companies. Using […]
