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Investing 101

November 11, 20140Comments

Return on Invested Capital (ROIC)

Forecasting performance using ROIC has stood the test of time. To be confident you are investing in a good company, ROIC will help you to separate the winners from the losers.
by David Trainer, Founder & CEO
November 7, 20140Comments

Everything You Need to Know to Get Started in Stock Investing

How to start investing in stocks.
by David Trainer, Founder & CEO
November 6, 20140Comments

Net Operating Profit After Tax (NOPAT)

It's time to dump EPS as a profit metric in favor of something better.
by David Trainer, Founder & CEO
October 14, 20140Comments

How to Value a Stock, Step 3: Economic Earnings

This article is the third in a four part series that walks readers through how to rate and value a stock. Our third step to gauge the value of a company is to determine its economic earnings.
by David Trainer, Founder & CEO
October 7, 20140Comments

How to Get the Best Investment Advice

Somewhere on Wall Street Yoda is wearing a suit and tie. “Cash flow good, invest you should…” Trustworthy wisdom. Mentor to apprentice. Dad to son. Wall Street to Main Street? Which of
by David Trainer, Founder & CEO
October 7, 20140Comments

7 Little Mistakes that Cost Investors Big Money

Imagine going back in time and giving yourself advice. How many small decisions would you change? How different would your health, wealth and relationships be? What small decisions have transformed into
by David Trainer, Founder & CEO
September 10, 20140Comments

How to Value a Stock, Step 2: Invested Capital

The second step to gauge the value of a company is to determine the sum of all cash that has been invested in a company over its life without regard to financing form or accounting name. We call this Invested Capital.
by David Trainer, Founder & CEO
August 29, 20140Comments

3 Keys to Success in Investing: Louisville CFA Society

I was recently invited to give this talk on my "3 Keys to Success" in today's world of investing.
by David Trainer, Founder & CEO
August 28, 20140Comments

How To Value A Stock, Step 1: Profit (NOPAT)

Our first step to gauge the value of a company is to determine the true, after-tax cash flows generated by its operations. We call this Net Operating Profit After Tax (NOPAT).
by David Trainer, Founder & CEO
August 6, 20140Comments

Get Our Free Ebook: “Three Keys To Avoiding the Next Stock Market Crash”

Concerned about a coming market correction? Learn how to protect your portfolio with these 3 tips.
by Andre Rouillard
May 30, 20142Comments

Analyst Notes: Definitions

The “Analyst Notes” column on the stock screener at newconstructs.com features insights into corporate events or disclosures that cause us to question the validity of a company’s financial reporting or the efficiency of the market for its stock.
by David Trainer, Founder & CEO
October 30, 20130Comments

My Presentation For Vanderbilt’s Managerial Studies Visiting Executive Program

Today, I had the pleasure of meeting with a very smart and attentive group of Vanderbilt undergrads as part of the Managerial Studies Visiting Executive Program.
by David Trainer, Founder & CEO
New Constructs
September 19, 20130Comments

GAAP Opinion versus Economic Fact

GAAP financial statements generally fail to meet equity investors' analytical needs. We try to calculate something that does.
by David Trainer, Founder & CEO
New Constructs
September 19, 20130Comments

The Disconnect between Investment Theory and Practice

A disconnect between investment theory and investment practice exists and is manifested in the way investors should value stocks versus the way they actually do value stocks.
by David Trainer, Founder & CEO
New Constructs
September 19, 20130Comments

Distinctions Between “Growth” and “Value” Investment Styles Are Irrelevant

Growth without profit (i.e. value) offers no investment merit. Conversely, value without growth offers little upside incentive for investing in any business.
by David Trainer, Founder & CEO
New Constructs
September 19, 20130Comments

Price-to-Earnings and Other Multiples Are Not Determinants Of Price

P/Es and other multiples are the results of of value creation/destruction not a determinant.
by David Trainer, Founder & CEO
August 22, 20130Comments

Enterprise Value – Definition and Calculation

The theoretical value of Enterprise Value is the total takeover value of the firm. And if that is the case, then all claims on cash flows need to be included. We go the extra mile with our diligence to ensure all claims are captured in our Enterprise Value formula.
by David Trainer, Founder & CEO
August 7, 20134Comments

How Our Reverse Discounted Cash Flow (DCF) Model Works

We make discounted cash flow (“DCF”) models useful and democratize the benefits of analyzing the future cash flow expectations baked into stock prices.
by David Trainer, Founder & CEO
June 24, 20132Comments

Growth Appreciation Period (GAP)

The Growth Appreciation Period is the number of years that a business is expected to earn an ROIC greater than WACC on new investments.
by David Trainer, Founder & CEO
June 24, 20130Comments

Free Cash Flow (FCF) and Free Cash Flow Yield

Free cash flow ("FCF") equals NOPAT minus change in Invested Capital.
by David Trainer, Founder & CEO
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