ROE Alone Can Mislead You. Return on Equity (ROE) gets a lot of attention—and rightly so. It’s a quick indicator of how effectively a company generates profits from shareholders’ capital. But used in isolation, ROE can give you a false sense of security. What you really need is a way to unpack ROE into its […]
The Hidden Power of the DuPont Analysis: Unpacking ROE for Serious Investors Read More »
Smart Investing Isn’t About Forecasting—It’s About Protection If you’ve been investing long enough, you know this truth: it’s not the winners that make or break your portfolio—it’s the losers. Avoiding big mistakes is the real game, and two tools help you do just that. One is the margin of safety. The other is free cash
Free Cash Flow and the Margin of Safety: A Double Defense for Value Investors Read More »
You’ve seen the lists. “21 Ratios Every Investor Must Know.” “15 Metrics That Predict Market Outperformance.” Most of these lists are bloated with academic fluff or Wall Street distractions that won’t move the needle for long-term value investors like you. What you need is precision. You need the seven key financial ratios that actually matter—ratios
Why Liquidators Make the Best Value Investors? Most investors try to predict growth. Liquidators look at what’s already there — and ask one simple question: If this business shut down today, how much money could we get back?This lens flips the script. It’s not about blue-sky projections, but hard asset values and what creditors would
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
Using Earnings Yield as a Proxy for Value Read More »
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
The Role of Financial Ratios in Identifying Value Stocks Read More »
