Value investing articles, screens and related topics
A Fortress Made of Paper You spot a stock trading at 40% of book value. It’s profitable. It pays a dividend. You start to feel that familiar itch—the one that whispers undervalued gem. The numbers check out. The market seems to have missed it. But a few months later, the stock is crushed. The dividend’s […]
Debt Ratios That Could Save You From the Next Value Trap Read More »
What if everything you’ve been taught about risk is wrong? Wall Street says volatility is your enemy. Buffett says it’s your friend. Financial advisors beg you to diversify. Buffett made billions by betting on just a few ideas. One side crunches equations. The other reads annual reports. And yet both claim to hold the key
Buffettology vs. Modern Portfolio Theory: A Showdown of Mindsets Read More »
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 »
You’ve probably heard it before—“the market is a voting machine in the short term and a weighing machine in the long term.” But most investors forget what that really means. When stock prices bounce on headlines and herd emotions, you’re left wondering: Is this stock actually worth buying, or am I just chasing smoke? That’s
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
Wonderful companies at fair prices has been Buffett’s mantra and this screen gives you that. These are large cap stocks that are selling at great price. They may not be undervalued in the classical sense, but these are quality companies with pedigree, and one can reasonably expect them to continue to grow and do well
54 Best Stocks to Buy Now Inspired by Buffettology (Large Cap, Mar 2025) Read More »
Growth investing is all the rage today. I follow a lot of investment sub-reddits and the consensus seems to be to just buy QQQ or SPY and sit on it. SPY if you want steady growth, QQQ if you want accelerated growth. A frequent advice on these forums is that you should look at the
Why Deep Value Investing Still Works in a Market Obsessed with Growth Read More »
In investing, it is easy to get carried away. I remember investing heavily in the internet stocks in the early 2000s without knowing much about what they do. I was in the IT industry so I assumed I knew technology. I had bitten off more than I could chew. Most investors think they understand their
Buffett’s Circle of Competence: How to Draw Yours Without Lying to Yourself Read More »
Warren Buffett is famous for his quotes, his calm temperament, and his legendary long-term holdings. But what separates him from almost every other investor isn’t just what he buys—it’s how much he buys. Behind the scenes, Buffett’s approach to capital allocation mirrors a little-known mathematical formula used by gamblers and quantitative traders: the Kelly Criterion.
Buffettology and the Kelly Criterion: The Hidden Formula That Supercharges Compounding Read More »
