Blog
Notes on value investing, security analysis and reading financial reports
-
4 min read
How FIFO vs LIFO Can Skew a Company's Profits: A Guide for Stock Investors
Imagine you're analyzing a consumer electronics company as an investor. You notice the company buys laptops for resale, but wholesale prices fluctuate. One month, a laptop costs $1,000. The next, it's $1,200. When the company sells a laptop, how do they decide…
-
6 min read
The Power of Compounding: How Small Investments Today Can Build Wealth Over Time
Compounding is often called the eighth wonder of the world, and for good reason. It is the concept that allows your money to grow exponentially over time, transforming small, regular contributions into substantial wealth. Understanding how compounding works ca…
-
5 min read
Avoiding Value Traps: Recognizing Signs of Declining Companies
For value investors, nothing is more thrilling than finding a stock that looks significantly undervalued. However, not every cheap stock is a good buy. Some stocks are cheap for a reason - these are known as value traps. A value trap occurs when a stock appear…
-
5 min read
Why Value Investing Should Be Your Investing Strategy
In a world dominated by trends, quick profits, and get-rich-quick schemes, it’s easy to overlook the tried-and-true strategies that have helped countless investors build sustainable wealth over time. One such strategy is value investing, an approach that focus…
-
11 min read
Charles & Colvard (CTHR): Value Analysis
Charles & Colvard, a small jewelry company with a strong balance sheet, presents a fascinating case for retail value investors. With a unique focus on lab-grown moissanite for conscientious millennials, the company’s growth potential is clouded by uncertai…
-
6 min read
10-K Red Flags Checklist (part 2)
This follow-up checklist dives deeper into a 10-K filing, highlighting essential checks like risk factors, accounting changes, and pension liabilities that can reveal hidden issues beneath a company's surface. With these more detailed steps, investors can spot…
-
6 min read
10-K Red Flags Checklist (part 1)
Uncovering red flags in a company’s 10-K report can help investors spot potential issues early, preventing costly mistakes. This checklist highlights critical sections to review, such as unresolved staff comments, auditor opinions, and legal proceedings, to qu…
-
14 min read
A value look at Netsol Technologies Inc (NTWK)
NetSol Technologies, Inc. is a small-cap software provider for auto manufacturers and regional banks, blending intriguing potential with notable risks. With a strong cash reserve but a management structure that raises questions, could this undervalued stock be…