Cornerstone contents
These are the most important articles on the site, explaining the basic concepts. Start with these before moving on to the newer ones.
[Case study] How I made 27% and 39% annualized returns – and why I sold the latter stock
I’m a practical guy, so let’s start with two case studies: These will make it easier to understand the logic behind the two different kinds of stocks: Fallen Angels and EVA Monsters. (If you haven’t already, please read my articles
My secret sauce to dividend investing, to ramp up my returns…
Having a steadily rising dividend attracts investors and builds trust in the company. Shareholders tend to interpret increasing dividends as a sign of strong financial health. Most of them think, “As long as the dividend is growing, everything must be
How to Build an Evidence-based Stock Selection Process in 7+1 Steps
It was one of the most exciting days since I started investing… My palms were sweating; I felt like my heart would jump out of my chest… I was heading to the Florida office of Chuck Carnevale, the co-founder of
Is That Stock Attractively Valued? Your Beloved Multiples May Fool You
The core principle of value investing is almost 100 years old, yet it is totally unchanged: always invest with a margin of safety. This means that the stock you are buying must be priced at a huge discount to the
What is EVA and How to Find Attractive Stocks in Today’s Market?
To understand this piece of content, you must be familiar with the most important problems of the income statement and the balance sheet. You have to accept the fact that accounting is not meant to help investors but to calculate
Most Recent Posts
Here you will find my current, most recent posts. This is especially for those who have already read the above content.
The EVA Monster Series: A Formidable Membership Business in Disguise
With this series, we’d like to give you some perspective on the companies in our distinguished EVA Monster universe. This rare breed of quality-growth stocks is worthy of your attention, and getting to know these businesses may pay off handsomely
Slaying the Sacred Cow of the Efficient Market Theory
Throughout the years, I kept emphasizing in the FALCON Method Newsletter that the current market price of a stock might have nothing to do with the value of the underlying business. While this statement is the cornerstone of value investing,
The EVA Monster Series: The King of Supercar Manufacturers
With this series, we’d like to give you some perspective on the companies in our distinguished EVA Monster universe. This rare breed of quality-growth stocks is worthy of your attention, and getting to know these businesses may pay off handsomely
Top Stock Investors: What Separates the Best from the Rest?
Confessions first: Have you ever decided on a stock purchase (or any other investment) based on a write-up, blog post, or third-party analysis? I’m guilty as charged, so don’t feel bad about this. It’s a widely held fallacy that following
Misleading Simplicity: The Hidden Pitfalls of Valuing Stocks
Bad news first: your brain is not hardwired to make you a successful investor. Throughout evolution, survival was our number-one aim. Long books on cognitive biases are filled with how ill-equipped we are when it comes to navigating financial decisions.
From Good to Great: How to Upgrade Your Investing Strategy
“Playing the stock market is easy.” I kept bumping into such boastful statements until Barstool Sports founder, Dave Portnoy, took this foolishness to the highest possible level by saying he was a better investor than Warren Buffett and that day
