Inspiring qualitative research – financial articles, shareholder letters, business wisdom, and much more.
Market Analysis: Trends, Risks, and Opportunities
In this article, we will explore how market analysis is used within investing, and the four types and five dimensions of market analysis.
Investor: A Century of Success and Influence
Investor, often referred to as the Swedish Berkshire Hathaway, was established in 1916 and has emerged as the largest Swedish investment company with an enormous impact on the Swedish economy.
Operating Margin: A Key Profitability Metric
Operating margin is a crucial financial ratio that measures a company's operating profitability. It assesses the proportion of operating income relative to total revenue, providing insights into the company's ability to generate profits from its core operations.
Industry Analysis: Identifying Lucrative Sectors
This article seeks to explain what industry analysis entails, its significance, the main purpose it serves, and the five important aspects that make up a comprehensive industry analysis.
Margin of Safety: Protecting Your Investments
Margin of safety provides a cushion against unforeseen events and market fluctuations, protecting investors from significant losses. This article explains what margin of safety means, the formula to calculate it, the significance of a 30% margin of safety, and why a high margin of safety is considered beneficial.
Value Investing: Finding Hidden Gems
In this article, we will explore the concept of value investing, its key principles, Warren Buffett’s strategy, and provide examples of typical value stocks that have yielded impressive returns.
Return on Assets (ROA): Evaluating Asset Performance
Return on Assets (ROA) is a financial ratio that measures a company's ability to generate profits from its assets. It provides insights into how efficiently a company utilizes its assets to generate earnings.
Collection: Mark Leonard's Shareholder Letters
The complete collection of Mark Leonard's Constellation Software Shareholder Letters (2007-2021).
EBITDA Margin: A Common Profitability Metric
EBITDA margin is a financial metric that provides insights into a company's profitability and operating efficiency. It measures the percentage of earnings before interest, taxes, depreciation, and amortization (EBITDA) relative to total revenue.
Valuation Metrics: Estimating the Worth of a Company
In this article, we will explore key valuation ratios, discuss the best metric for valuing a company, define valuation matrices, and determine what constitutes a good valuation ratio.
Gross Margin: Calculations and Analysis
Gross margin is a key financial ratio that provides insights into a company's profitability at the gross profit level. It helps stakeholders understand the portion of revenue remaining after deducting the direct costs associated with producing goods or providing services.
The Importance of Enterprise Value
Enterprise value (EV) provides a comprehensive assessment of a company's total value, taking into account its market capitalization, debt, and cash. In this article, we will explain the concept of enterprise value, how it is calculated for both public and private companies, and the use of EV/EBIT ratio as a valuation metric.
Earnings Season Recap #27
We’ve curated core ideas and lessons from the legendary investor Sam Zell, who recently passed away at the age of 81. Also, this dispatch includes quarterly highlights and curated quotes from HEICO and NVIDIA.
Operating Leverage: A Game-Changer for Financial Success
Operating leverage is a financial concept that measures the impact of fixed costs on a company's profitability. This article seeks to explain the concept of operating leverage, its formula, and whether high or low operating leverage is preferable.
Sam Zell: 8 lessons
Sam Zell focuses on understanding the intrinsic value of assets rather than following market trends, making investments that logically make sense based on in-depth industry analysis.
Free Cash Flow Margin: Why It Matters and How to Calculate It
Free cash flow margin is a crucial financial ratio that measures a company's ability to generate cash from its operations after accounting for capital expenditures. It evaluates the percentage of free cash flow relative to total revenue, providing insights into the company's financial health and cash generation efficiency.