Nuggets of Investing Wisdom

Nuggets of Investing Wisdom

A website for serious investors in common stocks

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value investing

Heart of stock valuation: subtleties of free cash flow

  • by Rodney Smith
  • Posted on January 24, 2021January 24, 2021
  • Part 7: Building and Managing a Portfolio

If a company’s capital expenditures are simply maintaining the company’s position in its markets, it free cash flow may be unduly high

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Stock valuation in an age of intangible assets

  • by Rodney Smith
  • Posted on November 29, 2020December 1, 2020
  • Part 7: Building and Managing a Portfolio

About forty years ago Buffett experienced a Damascene conversion

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How Warren Buffett goes about valuing companies

  • by Rodney Smith
  • Posted on June 8, 2020January 15, 2021
  • Part 7: Building and Managing a Portfolio

We are going to want to get a significantly higher return, obviously — in terms of cash produced relative to the amount we’re outlaying now — for a business than we are from a government bond. That has to be the yardstick at a base.

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The conventional view of market efficiency is badly mistaken

  • by Rodney Smith
  • Posted on March 2, 2020January 15, 2021
  • Part 1: The Field of Play

Prices in the stock market are never a reliable guide to the fair value of a stock.

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The under-performance of value stocks explained

  • by Rodney Smith
  • Posted on August 8, 2019January 15, 2021
  • Part 4: Principles of Operation

There is a lot of talk currently about the underperformance of value stocks compared with growth stocks over the last fifteen years. In fact, value investing has performed well against all other styles. This seeming contradiction comes from the fact that value investing and investing in value stocks are not the same thing.

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