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.
If I Could Give Only One Advice to Investors, THIS would be it
Do you know how Ben Graham, the father of value investing, used to open his famous course at Columbia? According to one of his students, Marshall Weinberg, this is what Graham said at the very beginning: “If you want to
The EVA Monster Series: How About the “House of Gucci”?
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
Playing By Different Rules Is Your Advantage
How on earth are we supposed to outsmart professional investors? Mutual fund managers control over 85 percent of the money in the stock market; they live and breathe stocks, so we don’t seem to have a realistic chance. Isn’t it
The EVA Monster Series: Will Intuit’s Management Prove Us Wrong?
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
Are You Guilty of This Common Investment Mistake?
Let me share one of my favorite stock market-related analogies. A middle-aged woman is walking through Central Park, and she has a very active dog with her. My Hungarian vizsla (Lara) would fit well in this story. Here she is
Grainger Case Study: The Anatomy of 30% Annual Returns
W.W. Grainger (GWW) first appeared in the FALCON Method newsletter in August 2017 when we bought the stock at $170.35. Fast forward ~5.5 years to March 2023, when we exited this position at $704.88, realizing an annualized total return of
