Blog articles

How to be a good investor in the stock market

The good investor in the stock market has an excellent understanding of his or her own behavior and capabilities to evaluate and select outstanding businesses and can stick to its investing strategy.

what do companies do with profits

Companies can use profits to invest in the business, acquire other companies or pay-out the profits as a dividend. Capital allocation is essential and requires CEO's who know what is best for long-term business success.

How to Pick Stocks for Long Term

The most important factor for selecting stocks for long term is picking a business with a strong and durable competitive advantage or moat. A strong lasting moat and a reasonable purchasing price increase the chances of long term investing success.

best stocks to buy

The best stocks to buy during (and after) recessions are nearing appealing prices. We will cover many businesses and the latest market moves of Warren Buffett to see how you can take advantage of the current situation.

Market Corrections

Mr. Market is quite depressive due to the coronavirus and oil price war. Here we focus on the facts and adequate behavior to take advantage of market corrections.

Best business of Warren Buffett

What is the best business according to Warren Buffett? A business that has the highest rate of return on tangible capital over time. This requires characteristics that will be discussed in this article. Finding such a business can greatly increase your investment returns over time.

How to value a stock using DCF

Determining the stock value is most accurate when using a DCF analysis. The method is rather simple, but the reasoning behind the assumptions is crucial to avoid investing mistakes. In this article we look at how to perform a DCF analysis and what factors to think about when valuing a stock.

EBITDA versus Free Cash Flow

Previously we explained Warren Buffett’s Owner Earnings which focuses on the free cash flow. EBITDA can give a dangerous perspective of the financial health of a company. In this article we look at a couple of examples of businesses to see if they generate cash. Multiple sources are used to explain this crucial factor for correctly assessing the financial health of a company.

Owner earnings

Owner earnings is introduced by Warren Buffett in 1986. Owner earnings is the cash that is available for the shareholders after capital expenditures. Here we see why this is so important and that many great businesses focus on available cash.