Author
With Berkshire Hathaway stock at all-time highs, I wanted to check in on Warren Buffett’s portfolio. In a recent Forbes interview, he recently prophesied that the Dow Jones Industrial Average would trade around $1 million in the next hundred years….
Continue reading
Ratio analysis provides investors and operators with a consistent framework for organizing and benchmarking numbers from a financial statement. By converting the raw financials into ratios, we can more easily spot relationships and trends across stocks. In this post, I…
Continue reading
Valuing and understanding the risks involved with a business or security requires the ability to benchmark individual data points against a universe. That’s why business managers, investors, and accountants alike use ratio analysis to guide their decisions. Ratio analysis provides…
Continue reading
The value of a firm or a share of a firm’s stock comes down to one simple but profound concept – the time value of cash flows. Specifically, the value of a firm’s stock is determined by the cash that…
Continue reading
The Uninformed Investor: “This stock is so cheap! The current stock price is only $0.50!”. The Smart Investor: “Umm…the stock price means nothing. Your stock’s EBITDA multiple is negative!” I know. Cheesy example. But hopefully, it gets the point across….
Continue reading