Nuggets of Investing Wisdom

Nuggets of Investing Wisdom

A website for serious investors in common stocks

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How Warren Buffett was influenced by Philip Fisher

  • by Rodney Smith
  • Posted on March 19, 2023March 21, 2023
  • Part 4: Principles of Operation

If the job has been correctly done when a common stock is purchased, the time to sell it is – almost never

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How Warren Buffett’s approach diverged from Ben Graham

  • by Rodney Smith
  • Posted on March 12, 2023March 19, 2023
  • Part 4: Principles of Operation

Buffett analyzed companies more subjectively than Graham, and he found intrinsic value in companies, such as See’s Candies, that Graham would not have touched.

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Let’s talk about what value really means

  • by Rodney Smith
  • Posted on February 6, 2022February 7, 2022
  • Part 7: Building and Managing a Portfolio

I would rather be vaguely right than precisely wrong

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Misconceptions about Warren Buffett’s approach to investing

  • by Rodney Smith
  • Posted on March 14, 2021March 14, 2021
  • Part 4: Principles of Operation

A high ratio of price to book value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent with a ‘value’ purchase.

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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 dangers and benefits of using Discounted Cash Flow analysis reports

  • by Rodney Smith
  • Posted on May 31, 2020November 29, 2020
  • Part 7: Building and Managing a Portfolio

Opinions of fair value based on DCF calculations are necessarily inexact (rightly vague?). But, at least they at least ask the right question.

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