Value investing articles, screens and related topics
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 »
When the Market Misprices Risk, Intrinsic Value Shifts Without Warning You hear it all the time: “Interest rates are rising,” “The Fed is pivoting,” “Bonds are back.” But few investors stop to ask what this actually means for the companies they own. Even fewer understand how changes in interest rates directly affect the intrinsic value
How Interest Rates Affect Intrinsic Value and Why Most Investors Miss the Signal Read More »
Don’t get fooled by a low P/E ratio. Learn how to evaluate this popular metric the right way—and spot true value before the market catches on. The Most Misunderstood Number in Finance You hear it all the time: “That stock has a low P/E, it must be cheap.” Or worse—”The P/E is high, so it’s
You’ve probably looked at a company’s book value and thought, “This stock is cheap.” But hold on. That number on the balance sheet doesn’t always mean what you think it means. For value investors, book value is a starting point, not the finish line. It can offer a clue to undervaluation, but only if you
Book Value of a Company: What It Tells You—and What It Doesn’t Read More »
P/E Ratio Explained: When It Matters and When It Misleads Everyone knows the P/E ratio. It’s the first number you hear on CNBC, the one retail investors quote to justify a “cheap” stock, and the headline metric on most financial screeners. But like all widely used shortcuts, it often leads people straight into mistakes. You
When to Trust the P/E Ratio – and When to Ignore It Entirely Read More »
Ignore the Noise, Focus on the Real Drivers of Value Every investor starts with good intentions: read the 10-K, skim the ratios, check the P/E. But most never move past the surface. They get stuck in the weeds, distracted by shiny metrics that don’t predict long-term performance. That’s not your game. If you’re managing your
Earnings, Moats, and Margins: The 3 Numbers That Drive Smart Fundamental Analysis Read More »
Most investors see a high current ratio and breathe a sigh of relief. The company’s liquid. It’s safe. There’s nothing to worry about, right? Not so fast. As a value investor, your job isn’t just to avoid bankruptcy. It’s to generate returns. And sometimes, excess liquidity hides something more dangerous: a management team that doesn’t
Is a High Current Ratio Always Good? Not If You’re Serious About Returns Read More »
Introduction: The Price Looks Right, But Something’s Off You’ve seen it before. A stock trading at 6 times earnings. Or maybe it’s below book value. On paper, it screams “bargain.” But months later, it’s still stuck—or worse, it’s fallen even more. You wonder, what did I miss? This article will help you avoid one of
What Is a Value Trap? How to Avoid the Most Dangerous Mistake in Value Investing Read More »
You’ve probably asked yourself: how do I research stocks without wasting hours chasing the wrong leads? That’s the right question—but most people get the wrong answers. They either read every piece of data under the sun or blindly follow stock tips without context. That’s a recipe for regret, not returns.In this article, I’ll walk you
How I Research Stocks Before I Risk a Single Dollar Read More »
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 »
