Analyzing companies

Analyzing Companies: One More Thing

Although this post focuses on analyzing companies for investment purposes, the basic thoughts apply to all investments. The Future You invest for the future. And all investing decisions require you to take a view, or form an opinion, about the future. Problem is: nobody knows the future. The good news is most things continue tomorrow […]

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Cash flow

Make Serious Money: Look At Cash Flow

Now that you know the difference between cash flow and earnings, it’s time to get to the meat of the concept, one easily overlooked by lazy investors. In fact, an accounting professor created a bit of a stir in 1996 when he published an article essentially saying lazy investors can be suckered by managements who […]

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Cash flow

Cash Flow, Part 2

Do you love board games, or groan when others insist you play one? Even if you like them, how do you feel at a dinner party when the host drags out a game you’ve never heard of, blows a cloud of dust off it, and with an irrepressible grin insists, “Oh, c’mon! You’ll love it… everyone […]

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Cash flow

Cash Flow, Part 1

Cash is king — how many times have you heard that? However, the first thing you usually look at when sizing up a stock is its PE ratio. The E in that equation is Earnings Per Share (EPS), which is simply the company’s earnings divided by the number of shares. Where’s the cash in that? […]

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enterprise value

Calculate Enterprise Value In Under 5 Minutes

Last week you made the acquaintance of two slightly more advanced concepts, Enterprise Value and EBITDA. Before we move on to something more exciting, let’s wrap up that topic. Now, if you were naughty, you would have allowed your eyes to glaze over, and say, nah, that stuff is too esoteric, abstruse and arcane for little old […]

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enterprise value

How Smart Investors Use Enterprise Value

You will recall from the free Investing Basics series how just about any investment is valued — as a multiple of earnings. This is particularly true when you’re thinking of buying or selling a private business, or stock in a publicly traded corporation. In the latter case, the multiple is called the P/E ratio, or […]

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short selling

The Long And Short Of Short Selling, Part 2

Last week, you learned you’re taking a bet with just about any financial decision you make. You also were reminded that your friendly brokerage is usually happy to lend you money so you can make more money. So this week we get down to the topic du jour: short selling. One more thing about you, […]

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