Value investing articles, screens and related topics
Why GARP Deserves a Spot in Your Portfolio Every seasoned investor eventually faces the dilemma: should you chase growth or hunt for value? The truth is, you don’t have to choose. The “growth at reasonable price” strategy, or GARP, blends the best of both. In a market where traditional value has struggled and pure growth […]
Growth at Reasonable Price: The Value Investor’s Secret to Outsized Returns Read More »
As a long term investor, you know that that some numbers are more important than others to find out which company deserves your investment dollars. Profitability Ratios tell you whether the business is running efficiently and creating value for the shareholders, or is eroding value over time investing in bad projects one after another. Earnings
The Profitability Ratios Every Serious Investor Should Master Read More »
Magic happens when discipline meets opportunity. And in the world of small-cap investing, few strategies have been as consistently intriguing, and polarizing, as Joel Greenblatt’s Magic Formula. By ranking stocks based on a combination of high return on capital and low valuation, the formula filters out the hype and shines a light on companies quietly
Top 10 Small Cap Magic Formula Stocks to Watch in May 2025 (High Returns, Low Prices) Read More »
When you invest in small caps, you often buy uncertainty at a discount. These companies can be temporarily out of favor, misunderstood, or just plain ignored by the broader market. That’s the opportunity. But it’s also the risk because the waiting game can be long. Value can take months, sometimes years, to surface. And if
How the Humble Current Ratio Shields You from Pain in Small Cap Value Stocks Read More »
Benjamin Graham defined what it means to be a value investor. The classic Grahamian value investing play relies on undervalued assets on the balance sheet, coupled with significant margin of safety. A dyed in the wool value investor patiently waits for Mr. Market to realize the correct value of these assets, and then reprice the
15 Mid Cap Value Stocks Graham Enterprising Investors will Love – May 2025 Read More »
Buffett taught us to seek quality at a reasonable price. He’s happy to sit tight with moaty giants compounding wealth over decades. Peter Lynch, on the other hand, made GARP investing his battlefield, tracking down fast growers that hadn’t yet captured Wall Street’s imagination. His legendary 13-year run at Fidelity’s Magellan Fund saw an annualized
9 Fast Growing Companies with Stocks You Can Buy at a Reasonable Price – May 2025 Read More »
You Can’t Rely on Earnings, But You Can Trust the Cash You know the game. A company hits the earnings estimate, maybe even beats it by a penny, and the stock pops. But what if that “beat” was a mirage, puffed up by accruals, non-cash adjustments, or accounting gimmicks? As a long-term investor, you can’t
Earnings Lie. These Cash Flow Ratios Tell the Truth Read More »
If you’ve ever wondered what Warren Buffett might look for if he were screening stocks today, you’re in the right place. This stock screen is built directly from the principles laid out in the bestselling book Buffettology. The goal is simple: identify companies with the financial strength, profitability, and resilience that could make them worthy
54 Large Cap Stocks That Meet the Buffettology Criteria – April 2025 Read More »
This isn’t just another financial metric — it’s the foundation of serious, lasting wealth creation. While financial media obsesses over earnings beats and Wall Street justifies inflated multiples, experienced investors know where to look: free cash flow. The Free Cash Flow Valuation Model is one of the most reliable, underutilized tools for assessing a company’s
The Free Cash Flow Valuation Model: A Quiet Weapon for Serious Investors Read More »
In the world of academia, elegance often trumps reality. You’re told to trust the math. That beta knows your risk, and CAPM tells you your return. The neatness is seductive—plug in a few numbers and out comes a risk-adjusted return. But what if this elegant formula collapses the moment real money is at stake? For
Why CAPM Fails Real Investors: The Hidden Risks in Relying on Beta Read More »
