“What” is Easier Than “When” in Investing

"I have no idea on timing. It's far easier to tell what will happen than when it will happen". - Warren Buffett In the beginning of 2012 , if you would have asked financial market "pundits" how the market is going to be in the next twelve months, I doubt many would have said that the market will go up by 16%. The US Presidential election campaign was in full swing, unemployment was too high, housing wasn't recovering fast enough, european sovereign debt crisis was at the forefront, and Chinese … [Read more...]

Stock Valuation Flow Chart

Even with all its shortcomings, discounted cashflow (DCF) valuation is one of the most widely used/abused stock valuation approaches. However, the plain vanilla DCF model needs a number of adjustments to be practically useful as a valuation tool. I captured the end to end process in this flow chart  - (Note: Click on the image for a larger view of the picture.) 1. Quarterly (10Q) and Annual (10K) Filings I typically start reading last four quarters 10Qs and at least the last 10K. All the … [Read more...]