The US GAAP (Generally Accepted Accounting Principles) was created to match revenues with expenses, and standardize reporting across all companies in all industries and sectors, but often the results can be misleading. Additionally, it introduces opportunities for the management to “smoothen” things out to keep the Wall Street happy. As a result, investors end up […]
Earnings vs Free Cash Flow: What Really Matters? Read More »
Ultimately GARP amounts to a measure of quality that you can buy at a good price. As Buffett is fond of saying, try to buy wonderful businesses selling at a good price. This Growth at Reasonable Price screen considers the 5 year sales growth, operating income growth and earnings growth and filters for companies that
4 Mid Cap Growth at Reasonable Price Stocks – Feb 2025 Read More »
Investors have long debated why cheap stocks—those with low price-to-book (P/B), price-to-earnings (P/E), or price-to-cash flow (P/CF) ratios—tend to outperform over the long run. This persistent phenomenon, known as the value premium, has been a cornerstone of quantitative and fundamental investing for decades. But why does it exist? Is it a free lunch, or does
The Value Premium: Why Value Stocks Outperform Over the Long Run Read More »
Laying the Groundwork for a Diversified Investment Portfolio A well functioning highly performing value portfolio takes time and effort to built. It may seem daunting at first, but you can create processes and structures that will make the portfolio building and maintenance almost effortless. Here I lay out the ground work for a winning diversified
7 Steps to Build a Diversified Investment Portfolio from Scratch Read More »
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
The Fama and French 3 Factor Model – A Game Changer for Value Investors Read More »
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
How to Leverage Dividends in Value Investing Read More »
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.
Dollar Cost Averaging: How Can Value Investors Approach This Strategy? Read More »
The market will test you. Over and over again. No matter how experienced you are as an investor, no matter how rational you think you are, moments of panic and uncertainty will creep in. The question is not whether downturns will happen, but whether you will react rationally or succumb to emotion when they do.
Introduction: Why Should Value Investors Care About Investing in REITs? When value investors think about undervalued assets, they typically focus on stocks trading below their intrinsic value. But the same principles apply to investing in REITs. While many investors view REITs purely as income-generating vehicles, they can also present compelling value opportunities when mispriced by
Investing in REITs: A Value Investor’s Perspective Read More »
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
Do Dividends Matter in a Value Investor’s Portfolio? Read More »
