enterprise multiple
General Information

Which price ratio outperforms the enterprise multiple?

Which price ratio outperforms the enterprise multiple? In their very recent paper, “Analyzing Valuation Measures: A Performance Horse-Race over the past 40 Years,” Wes Gray and Jack Vogel asked, “Which valuation metric has historically performed the best?“- Gray and Vogel examine a range of price ratios over the period 1971 to 2010: Earnings to Market […]

Retained Earnings
warren buffett

Retained Earnings: Warren Buffett’s Secret

One of the most important indicators of durable competitive advantage. Net earnings can be paid out as dividends, used to buy back shares or retained for growth.If the company loses more than it has accumulated, retained earnings is negative.If a company isn’t adding to its retained earnings, it isn’t growing its net worth.Rate of growth […]

civilization
Thoughts

Durant’s

When the group or a civilization declines, it is through no mystic limitation of a corporate life, but through the failure of its political or intellectual leaders to meet the challenges of change.

Competition

Competition and new Environments

The Wealth of Nations

Adam Smith, The Wealth of Nations (1776)

There two things

There two things you can do in life

Passive Investing

Passive Investing

valueandprices
Mental Model

Mental Model

Pattern Recognition or “Functional Equivalents” Keith Holyoak, a UCLA professor of psychology and one of the world’s leading thinkers on analogical reasoning, recommends people ask themselves the following two questions in order to hone their skills: By constantly looking at objects in your environment and material you read and asking yourself these two questions, you […]

valueandprices
Guest Posts

Understanding Risk and Uncertainty

A Short Paper on Risk & Uncertainty by Ernie Risk as it relates to investing is an event that unfolds to induce impairment or loss of capital. There are many types of risk. To name a few, there are financial, market, economic, systemic and portfolio risk. Generally speaking, risk causes volatility in the stock market, […]

valueandprices

Most influential investment thinker of all time

valueandprices

Here are some of Bogle’s words of advice:

valueandprices

Avoid Envy and Jealousy; zero upside and infinite downside