evaluating investments
Educational articles in this subcategory.
Dividend Sustainability Checks
**The practical point:** You don't need to guess if a dividend will be cut—companies with payout ratios above **80%** have a **3.2x higher** probabili...
Reading Income Statements for Key Trends
- **Difficulty:** Intermediate - **Published:** 2025-12-28 The practical point: **an income statement is a trend document**, and the trends th...
Balance Sheet Strength Indicators
The practical point: **you want a balance sheet that can survive a 90-day revenue shock without forcing dilution, fire-sale assets, or a covenant brea...
Cash Flow Statement Signals Investors Should Watch
The practical point: **you trust earnings at 1× only after you verify cash at 3×—operating cash flow, free cash flow, and working-capital efficiency.*...
Profitability Ratios: Margins, ROE, ROIC
# Profitability Ratios: Margins, ROE, ROIC - **Difficulty:** Intermediate - **Published:** 2025-12-28 The practical point: **a 24% ROE can be "...
Valuation Multiples Overview: P/E, EV/EBITDA, P/S
The practical point: **a multiple is a price you pay today for 1 unit of a business metric over the last 12 months (TTM)**—and your return over the ne...
Growth Metrics: Revenue CAGR, Same-Store Sales
The practical point: **a reported 18% revenue CAGR can be "real" and still be low-quality if only ~13.8% is organic and same-store sales decelerate fr...
Analyzing Expense Ratios and Fund Costs
The practical point: **a "small" 0.77% annual fee gap (77 bps) can compound into a $451,000 difference over 30 years** on a $150,000 starting balance ...
Comparing ETF Tracking Difference and Error
**The practical point:** if your ETF lags its index by **0.10% per year**, you are accepting a cost that is roughly **$2,000 per $100,000 over 10 year...
Credit Ratings and Outlooks Explained
The practical point: **a 1-notch rating move can change your 5-year default odds by multiples and your bond's spread by 15–200 bps**, so you treat rat...
Qualitative Factors: Management and Governance
# Qualitative Factors: Management and Governance The practical point: **a 2-point move in governance quality can be worth ~8.5% per year in risk-ad...
Moats and Competitive Advantage Frameworks
# Moats and Competitive Advantage Frameworks **Difficulty:** Intermediate **Published:** 2025-12-28 The practical point: you are underwriting *...
Using 10-Ks, 10-Qs, and 8-Ks Effectively
# Using 10-Ks, 10-Qs, and 8-Ks Effectively **Difficulty:** Intermediate **Published:** 2025-12-28 The practical point: you're trying to convert...
Red Flags in Promotional Investor Decks
# Red Flags in Promotional Investor Decks **Difficulty:** Intermediate **Published:** 2025-12-28 The practical point: **a deck can be "true" an...
Scenario Analysis for Revenue Drivers
The practical point: **A 10% miss in 1 key revenue driver can shift Year 3 revenue by $6.7M in a $67M business**, which is large enough to swing an ac...
Checklist for Evaluating Investment Newsletters
The practical point: if you can't **verify** a newsletter's edge to at least **+1.5% annual alpha** after **(1) trading friction, (2) factor exposure,...
How to Vet Financial Data Sources
The practical point: **you are not buying "data," you are buying an error distribution**, and the difference between **14.2%** and **1.6%** bad observ...
Building a Simple Valuation Model in a Spreadsheet
The practical point: **in a standard DCF, a 1.0 percentage-point change in terminal growth can move your valuation by ±15–25%**, so your spreadsheet i...
Documenting a Thesis and Monitoring Triggers
The practical point: **Write a 1-page, date-stamped thesis at least 24 hours before you buy**, attach **≥5 triggers (3 fundamental + 2 price-based)**,...