Investment Strategies

Why Stock Returns Aren’t Just About Market Risk A staple of business schools all across the country, Capital Asset Pricing Model, or CAPM, is traditionally considered a model sufficient to explain the stock returns. CAPM tends to paint all stock returns with a single brush – a function of market risk. You probably know the […]

As value investors, we invest in stocks selling at a discount to the intrinsic value, and expect the stock price to appreciate and approach the fair value which gives us a profit. By definition, we are looking for capital appreciation. Typically, income tends to be an after thought in this analysis. In fact, most value

The Timeless Debate on Dollar Cost Averaging Dollar cost averaging (DCA) is one of the most popular investing strategies for retail investors. It involves consistently investing a fixed dollar amount into stocks or funds at regular intervals, regardless of market price. Over time, this approach helps smooth out volatility and removes emotional decision-making from investing.

Why Dividends Matter—Even If They’re Not the Primary Focus Many investors dismiss dividends as irrelevant, arguing that they do not impact a company’s intrinsic value. The logic is that whether a company retains earnings or distributes them as dividends, the value of the business remains the same. While this argument holds in theory, reality is

Why Market Cycles Matter in Value Investing The market moves in cycles, swinging between optimism and pessimism, creating opportunities for patient investors. While value investing focuses on identifying fundamentally strong businesses trading below intrinsic value, recognizing where we are in the cycle can help enhance returns and avoid value traps. Understanding cycles is particularly important

Value investing thrives on simplicity. Earnings yield is one of the most straightforward tools in a value investor’s toolkit—and one of the most effective. It makes the investment process clearer by showing you what kind of return you might expect based on the price you’re paying. Unlike complicated valuation models that can feel like solving

What if you could decode the financial health of a company in minutes? For value investors, financial ratios offer this very power—a way to measure the intrinsic worth of a company against its current market price. Understanding and applying these ratios can help uncover hidden gems in the stock market. This article will explore the

Building wealth that spans generations often involves studying those who have done it successfully. Families like the Rockefellers, who grew their fortune through oil and investments, and the Waltons, who leveraged Walmart’s massive success, provide valuable lessons. Notably, many of these families built their wealth through strategic investing—from equities to real estate—showcasing the enduring power

Imagine finding a company that is so undervalued that you can buy it for less than what it can fetch in a liquidation! Your worst case scenario is that the company is closed down, and you still make money. These are the net-net stocks and these are every value investor’s fantasy. Popularized by Benjamin Graham,

As a value investor, you would like to buy a stock for less than it is worth. To be able to do this well, you first need to figure out what the stock is worth. This is the process of estimating the intrinsic value of stock. Estimating Intrinsic Value of Stock is an Art Learned