Browsing Category: "Education"
Return on Enterprise Value (ROEV) is a stock valuation ratio that can be useful for comparing the values of different companies. It is simply net cash flow divided by enterprise value. Net cash flow is net profit plus amounts charged off for depreciation, depletion, and amortization. I was unfamiliar with this stock fundamental until Ken Faulkenberry [...]
The EBITDA to enterprise value (EV) ratio is a widely used valuation multiple to assess the relative value of companies. It is calculated by simply taking earnings before interest, taxes, depreciation and amortization (EBITDA) and dividing by enterprise value (EV). Of course, you need to know the definitions of both of those terms to really [...]
As I was standing in line today for a free flu shot at my office, it dawned on me that I should remind other value investors to maintain their health during this financial crisis. I am sure that other value investors sifting through the wreckage of this stock market decline are extremely busy and stressed [...]
Thank you for contributing and participating in the 30 Days to Becoming a Better Investor community event. I think we have learned a lot over these past 30 days. I hope our efforts have helped you become a better investor. Now it is time to take our new-found knowledge and put it into practice.
Alexander Barbara of WealthJunkie recently discovered a way to read the first three chapters of Benjamin Graham’s “Intelligent Investor” for free. If you have not gotten a change to read this classic investment book, I highly recommend you read at least these first three chapters for free. I’m not the only one recommending it. Warren [...]
Today’s tip on becoming a better investor comes from deep within my archives. Last year I started exploring investment alternatives when I was having trouble finding value opportunities in wide moat companies. I discovered arbitrage and special situation opportunities. Take a few minutes tonight to explore my initial thoughts on these unique investment opportunities. Mike [...]
Examining conflicts of interest between management and shareholders is critical when choosing companies that are worthy of your investment. Arpit Ranka examines these conflicts of interest. He discusses liquidation, expansion, buybacks, compensation, and the role of directors. You can often find some information about conflicts of interest in proxy statements, and I recommend that you [...]
How do you pick your stocks? Alexander Barbara over at WealthJunkie examines three paths you can take to picking stocks in his recent post, “From The Mail Bag: How People Pick Stocks“. I like Alexander’s focus on using your own brain, and not relying on a stock picking service, to become a better investor. I [...]
Shai Dardashti notes that value investing in 2005 is not strictly an American game anymore. This post is definitely worth reading, especially given the great exchange of comments associated with it. Catch up on all the 30 Days to Becoming a Better Investor submissions by visiting the summary.
Happy Thanksgiving! Today is the Thanksgiving holiday here in the United States. I hope you are able to spend some time with family and friends today. They are an important part of your success at becoming a better investor. I am thankful for my health and that of my family’s. I am also thankful for [...]
