Monthly Archives: September 2010

Du Pont Model: Dissecting the Fundamentals behind Return on Equity

You can see above an image of a Du Pont model I took from Google Images.  This is one of the most important ways to assess a company’s performance and find out why changes have occurred with a business’ fundamentals.  … Continue reading

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Valuation

I am writing this to have a written record of my current valuation methods and to instruct those who are perhaps looking for a fresh viewpoint. I started reading about investing two years ago this month.  In my search for … Continue reading

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Issue 4

It may seem strange that I skipped Issue 3, but I am not a huge fan of energy companies and skipped over their valuations for now.  I plan on getting back to it later, but I saw more interesting industries … Continue reading

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Operating Leverage Explained

I am writing this because not too many people I speak with have any idea about operating leverage.  Everyone knows about financial leverage (debt), but somehow operating leverage slips under their radar.  This article is meant to be an introduction, … Continue reading

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Working Capital Explained

I am not writing this as an over-arching discussion of every possible way to look at working capital; there are many ways to view it in a business and I want to only have a simple discussion about its affect … Continue reading

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Issue 2

Issue 2 had some interesting industries and I particularly like reading about restaurants, railroads, and maritime shipping.  As should be expected, all the airlines are terrible and the waste management companies are not particularly profitable.  I cannot point at any … Continue reading

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Issue 1

I just finished going through Issue I in Value Line, and as a general rule for the future, I will post my ideas on any interesting situations or great businesses that I found.  Unfortunately in this issue, there were no … Continue reading

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