The blog
Understanding value investing, without the needless jargon.
The Dividend Trap: When a High Yield Is a Danger Signal
A generous dividend catches the eye and feels safe. But a yield that climbs often hides a price that is collapsing, and a dividend too heavy to carry ends up cut. Here is how to spot the trap.
Read →Free Cash Flow Yield: Valuing a Company by Its Cash, Not Its Accounting Profit
Earnings are an opinion; cash is a fact. Free cash flow yield asks the plainest question in valuation, how much real cash a business throws off for every dollar you pay. Here is how to compute it, and where it misleads.
Read →Return on Invested Capital (ROIC): The Single Best Measure of Business Quality
One ratio answers the question Warren Buffett cares about most: does this business turn a dollar of capital into many, or into few? Return on invested capital is that ratio — and its durability is the whole game.
Read →P/E vs EV/EBIT: Why Two Stocks at the Same P/E Are Not the Same Price
The P/E ratio ignores debt and cash. Two companies trading at 12 times earnings can cost, in practice, twice as much one as the other.
Read →The value investing letter
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