Net Asset Value Model: A Valuable Tool for Finding the Intrinsic Value of a REIT
Real estate investment trusts, or REITs own, manage, and finance income-producing properties. By law, these businesses must distribute at least 90% of their profits to shareholders as dividends. Valuing REITs is a difficult proposition because of the structure of the business and the fact that shareholders receive the majority of the free cash in the […]
What is a Company’s Optimal Capital Structure and What Influences It?
Updated 11/9/2023 “The first question is, is when you have capital, is it better to keep it or return it to shareholders? It’s better to return it to shareholders when you cannot create more than a dollar of value with that capital. That’s test number one. And if you pass that threshold, that you think […]
How to Choose the Right ETF
Updated 10/27/2023 With more than 2,000 ETFs or exchange-traded funds available in the U.S. alone, choosing the right ETF might seem like picking out the best coffee at the grocery store. How do you know which one is the right one for you? ETFs have come a long way since being introduced in 1993, and […]
The Free App I Use to Find Local Gas Stations That Do Cash Back
With gas prices on the rise, you might be looking for relief at the pump. Rather than sift through long lists of gas stations that do cash back in your area, why not try an app that does it daily for you? I’m talking about an app called GetUpside. When you first sign up for […]
Making the Discount Rate Formula Simple – Explain it Like I’m a 7th Grader
To me, one of the hardest parts of understanding a DCF valuation was the discount rate. It didn’t help that the formula was complex. I’d like to make the discount rate simple, using simple words. Maybe if you can understand the basic concept of the discount rate, it will help with calculating one for yourself, […]
“There is Always a Bull Market Somewhere.” Or is there?
Brand new investors might look at a rising stock market and all-time highs as a potential indicator that stocks are expensive. However, new investors should consider the quote I heard from the popular Jim Cramer when I first started investing—that “there is always a bull market somewhere”. If there’s always a bull market somewhere, then […]
Calculating Intrinsic Value with a DCF Like Warren Buffett Would
“Intrinsic value is an all-important concept that offers the only logical approach to evaluating the relative attractiveness of investments and businesses. Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life.” Basehit Investing These thoughts come directly from page […]
5 Golden (Mindset) Tips to Success for the Lifelong Investor
When it gets down to it, we are all lifelong investors. As long as you have a 401k, you are a lifelong investor. As long as you are drawing from savings, you are a lifelong investor. Once we come to grips with this idea, we can set ourselves up for better success. Table of Contents: […]
Assessing The Capital Allocation Skills of Management
Updated 9/15/2023 Capital allocation is job number one for any management team. The problem is that most CEOs lack this skill, intending to build long-term value for both shareholders and the company. Warren Buffett talks about finding management teams he trusts and acting in the best interests of shareholders, and part of that is the […]
Nervous for Inflation? Use a Gold ETF as a Hedge
Updated 6/24/2024 Over the past few years, the US has experienced record-breaking inflation. This has affected people in every way financially from home loans to rising grocery prices. One potential way to combat this is by investing in precious metals, such as gold. So, what would be the best Gold ETF to invest in? Let’s […]
