by Ankur Shah | Jul 18, 2023 | Investment Strategy
In the short-run almost anything from the financial news media, sentiment or god forbid Cramer can cause share prices to fluctuate. However, over time a company’s fundamentals such as earnings, sales and cash flows and overall quality are the main determinants...
by Ankur Shah | May 26, 2023 | Investment Strategy, Stock Analysis
Intrinsic value is an all-important concept that offers the only logical approach to evaluating the relative attractiveness of investments and businesses. Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business...
by Ankur Shah | May 11, 2023 | Investment Strategy, Stock Analysis
In my prior post, I discussed why ROIC is the single best metric to determine the quality of a business. In general, you want to own high ROIC companies because they’ll be able to produce a real economic return over and above their cost of capital. I highlighted...
by Ankur Shah | May 3, 2023 | Investment Strategy, Stock Analysis
If I were only able to analyze a single metric before investing in a company it would be ROIC (Return on Invested Capital). Fundamentally, a company creates value by taking capital from investors (both debt and equity) to generate cash flows in the future. A company...
by Ankur Shah | Apr 26, 2023 | Investment Strategy
Ray Dalio, the founder of Bridgwater Associates, popularized the phrase “cash is trash” when interest rates were significantly lower. He correctly observed that net of inflation and taxes, cash has historically produced a negative return. Thus, rational...
by Ankur Shah | Jun 2, 2021 | Investment Strategy
Recently two heavily shorted stocks GameStop (GME) and AMC Entertainment (AMC) have shot up in value again. GameStop is a failing video game chain. It’s failing for multiple reasons but primarily due to an outdated business model. Gamers no longer need to go to...
