Half the battle is just showing up… Sounds like a motivational speech… Showing up will lead to success. Just turn up at the office or the gym, and the rest will fall into place. Well, not necessarily – there is still work to be done, but showing up is the first step. 🪝 Investors need… Continue reading
My introduction to the bounce-back rate. In my 20s, I launched, expanded, and faced failures in multiple companies. Early on, I became intrigued by the concept of “bounce-back rate.” Whether in business meetings or discussions with mentors, the term was frequently used. When a prominent entrepreneur or business figure in the community encountered a setback,… Continue reading
The business life cycle, also known as the business growth cycle, is the progression of a business as it passes through various stages in its operating life. The business growth cycle follows a business from the start-up phase as it crosses the breakeven point and begins to mature, slow, and eventually decline. Understanding these phases… Continue reading
Economic and market cycles (boom and bust cycles) are two interconnected economic concepts. Economic cycles relate to the fluctuations between periods of expansion and contraction within the economy, whereas market cycles refer to the fluctuations in financial markets. Although they are often intertwined and market cycles can be influenced by economic cycles, they can also… Continue reading
Porter’s Five Forces is a business strategy framework developed by Michael E. Porter, a Harvard Business School professor. It is a valuable model for understanding the competitive landscape within an industry. It can also help to discover the big wide MOAT that surrounds and protects the castle. TABLE OF CONTENTS: What is Porter’s Five Forces?… Continue reading
Less than 5% of companies drive all market returns. Understanding the fact that less than 5% of companies are responsible for all returns above bonds is crucial for investors. Research by Hendrik Bessembinder reveals that 58% of stocks fail to outperform bonds, 38% beat bonds modestly, and just over 4% of stocks drive overall market… Continue reading
What is the Stock Market? It may seem unusual explaining the existence of the stock market. The intention is to outline the basics of the stock exchange to remind investors why they are participating. Wikipedia summarizes it well. “The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers,… Continue reading
What is Common Size Analysis? Common Size analysis is an accounting method used to measure each line item on the financial statements as a percentage of a base or common figure. For example, Revenue is often used as the base figure on the income statement. This means that all the line items such as cost… Continue reading
What’s the Difference Between Cash Flow and Profit? In previous blogs, we’ve covered the Income Statement and Cash Flow Statement. It’s important for investors, especially those new to financial statements, to understand the differences between Cash Flow and Profit. While they are often used interchangeably, Cash Flow and profit are not the same. In a… Continue reading
Working Capital is the cash needed for a business to carry on operating and covering short-term obligations. Understanding a business’s Working Capital needs is a great way to measure the near-term liquidity and risk factors of a business to carry on day-to-day activities. It can provide investors insights into the operating efficiency of the business… Continue reading
