Why Free Cash Flow Matters for Investors Many investors focus on earnings per share (EPS) or revenue growth when evaluating stocks, but smart, long-term investors—including Warren Buffett—pay close attention to free cash flow (FCF). Smart investors know that cash flow is a better indicator than earnings. To understand why, check…
Category: Getting Started
Why ‘Doing Nothing’ Is the Best Investing Strategy for Wealth
Investing can feel complicated, especially when markets are volatile. Many people believe the best investing strategy is to take constant action—buying, selling, and adjusting their portfolios based on market conditions. However, history has proven that the most successful investors follow a simpler approach: do nothing and let their investments grow…
The Ultimate 10-Point Checklist for Picking Forever Stocks
Long-term investing is one of the best ways to build lasting wealth. Instead of chasing short-term trends, smart investors focus on high-quality businesses that can thrive for decades—what we call “forever stocks.” Warren Buffett famously said: “If you aren’t willing to own a stock for 10 years, don’t even think…
Why Is The Cash Flow Statement the Ultimate Truth-Teller?
When analyzing a company’s financial health, many investors focus on net income, earnings per share, or revenue growth. However, seasoned investors like Warren Buffett know that the cash flow statement is the real “truth-teller” of a business. While profits on paper can be manipulated with accounting tricks, a company’s cash…
How to Beat Inflation and Avoid Losing Real Wealth
Why You Must Beat Inflation to Grow Wealth Beat inflation — this isn’t just a buzz phrase for financial headlines. It’s one of the most important long-term goals for any investor who wants to preserve and grow real wealth. If your investments are not outpacing inflation, you’re actually losing money—even…
How to Find the Best Investment Style for Your Goals
Why Your Investment Style Matters Investing is not a one-size-fits-all endeavor. Whether you’re a beginner just starting to build a portfolio or an experienced investor refining your approach, choosing an investment style that aligns with your financial goals, risk tolerance, and personality is crucial to long-term success. A well-defined investment…
The Truth About Market Guests and Stock Advice
Are TV and Podcast Guest Stock Picks Worth Following? Can you trust market guests featured on TV shows, podcasts, or social media? It’s a critical question for any investor trying to make sound, rational decisions in an increasingly noisy environment. Financial media—be it CNBC, YouTube, or investing podcasts—often features analysts,…
How to Allocate Cash in an Overvalued Market (Smart Investing Strategies)
The Challenge of Investing in an Overvalued Market How should investors allocate cash in an overvalued market? With stock valuations at historically high levels, many long-term investors face a tough decision—should they keep investing, hold cash, or wait for a downturn? Stock market overvaluation is not a new phenomenon. From…
Black Swan Events: Preparing Your Portfolio for the Unthinkable
What Are Black Swan Events and Why Should Investors Care? Imagine waking up to news that the stock market has plunged 30% overnight. Major banks are failing, companies are shutting down, and investors are panicking. This scenario may sound extreme, but history shows that unpredictable, high-impact financial events—known as Black…
How to Use Free Cash Flow Yield to Find Undervalued Stocks
Free Cash Flow Yield (FCFY) is one of the most underappreciated yet vital metrics for long-term investors looking to identify undervalued stocks. While terms like “earnings per share” or “P/E ratio” dominate conversations, free cash flow is the lifeblood of any business. It represents the actual cash a company generates…