How to invest

How to invest – how super investors like Warren Buffett look at the stock market and analyze stocks. Books and articles are used as references

best stocks to buy

The 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.

Best business of Warren Buffett

The Best Business According to 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

How to value a stock using a 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

EBITDA versus Free Cash Flow Examples

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

Warren Buffett and 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.

Stock portfolio selection

Stock Portfolio Selection

Here we look at building your stock portfolio. First you need to make sure that you understand investment risk and are able to select great businesses. Advice from some of the best investors will help to build a stock portfolio that will grow in value over time. Furthermore, we will explain that a focused portfolio is most likely to beat the market over time.

Understanding Investment Risk

Understanding Investment Risk

Investment risk is commonly understood in terms of volatility in the world of Finance. This academic definition of investment risk is fundamentally different from the view of Warren Buffett on risk. This article discusses the differences in these viewpoints on investment risks and explains why it is essential to understand investment risk correctly.