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 market cap of the stock market, which is 13% of the market, third-largest by market cap compared to tech and consumer discretionary. Most investors ignore or pass the financial industry by, largely because they don’t understand the industry or valuing those companies. […]

3 Simple Tips for Managing Interest Rate Risk in an Ever Changing World

Updated: 5/23/2023 For investors, basic interest rate risk management means that your portfolio should still earn a decent return even if interest rates were to trend in an unexpected direction. History can show us explicitly how interwoven interest rates and valuations (stock prices) have been; history also tells us that changing interest rates are the […]

Tips for Conquering the Narrative Fallacy in the Stock Market

Every stock carries a narrative. Hopefully this narrative has been borne from numbers. But, two people can look at the same set of facts and come to opposing conclusions—this is the basis of the narrative fallacy. Narratives are intrinsically powerful to us mere mortals because we all want to make sense of the world. Seeing […]

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 […]

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