The dangers and benefits of using Discounted Cash Flow analysis reports
Opinions of fair value based on DCF calculations are necessarily inexact (rightly vague?). But, at least they at least ask the right question.
How to get the most out of analysts’ reports
Since analysts’ reports are so important in our work of identifying and studying companies to invest in, we need to look at the strengths and weaknesses of these reports.
The joy of higher return with no more risk
If we calculate the value of a common stock to be only slightly higher than its price, we’re not interested in buying
Many investors just don’t understand the risk/reward trade-off
Take the probability of loss times the amount of possible loss from the probability of gain times the amount of possible gain.
Problems with CAPE Part lll
Wrap up on the drawbacks of CAPE. A fair level for price earnings ratios has changed over the years.
Problems with CAPE – Part ll
Investors are reading CAPE all wrong.
Problems with CAPE – Part l
A CAPE ratio of 26.91 does not prove the stock market is overpriced. The stock market today may be overpriced or underpriced. CAPE using a historic average as a benchmark just doesn’t tell us one way or another
Financial strength – the debt equity ratio has serious shortcomings
No company under consideration will even be close to scrambling to pay its creditors.
How to identify great companies to invest in – Part lll
There needs to be a skilled knight in the castle to protect and enhance the moat.
How to identify great companies to invest in – Part ll
Some companies are in the seemingly fortunate position that they can maintain profit margins simply by raising prices.