Value Investing

Value investing articles, screens and related topics

fundamental analysis drivers

Earnings, Moats, and Margins: The 3 Numbers That Drive Smart Fundamental Analysis

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 […]

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high current ratio

Is a High Current Ratio Always Good? Not If You’re Serious About Returns

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

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what is a value trap

What Is a Value Trap? How to Avoid the Most Dangerous Mistake in Value Investing

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

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how do I research stocks

How I Research Stocks Before I Risk a Single Dollar

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

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debt ratio

Debt Ratios That Could Save You From the Next Value Trap

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

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modern portfolio theory vs buffettology

Buffettology vs. Modern Portfolio Theory: A Showdown of Mindsets

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

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dupont analysis

The Hidden Power of the DuPont Analysis: Unpacking ROE for Serious Investors

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

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fundamental analysis of stocks

Stop Guessing: How to Use Fundamental Analysis of Stocks to Know What a Company Is Really Worth

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

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free cash flow

Free Cash Flow and the Margin of Safety: A Double Defense for Value Investors

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

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key financial ratios

The 7 Key Financial Ratios That Actually Matter for Long-Term Value Investing (and 1 that Doesn’t)

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

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