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.
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
Market Corrections and Recessions
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.
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 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 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.
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.
Warren Buffett’s View on Investor Behavior
Investor behavior is probably the most important factor for investment success. Warren Buffett’s investment behavior advice will help to increase success.
Book Value and Intrinsic Value
What is a good balance sheet and is book value equal to the intrinsic value? Ultimately, the earnings power of the assets is what counts for intrinsic value.
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
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.