November 8, 201211Comments

Invested Capital: Definition And Formulae

Invested capital equals the sum of all cash that has been invested in a company over its life without regard to financing form or accounting name.

by David Trainer, Founder & CEO

November 8, 20126Comments

NOPAT: Definition And Formulae For Net Operating Profit After-Tax And NOPAT Margin

NOPAT is the after-tax operating cash generated by the business, excluding unusual losses and gains, financing costs, goodwill and other non-cash items.

by David Trainer, Founder & CEO

November 8, 20120Comments

ROIC: Definition And Formulae for Return on Invested Capital

ROIC is the true measure of a company's cash on cash returns.

by David Trainer, Founder & CEO

June 18, 20120Comments

Definition: Price-To-EBV, or Price to Economic Book Value ratio

The difference between the stock price and Economic Book Value (EBV) of s stock measures the difference between the market's expectation for future profits and the no-growth value of the stock.

by David Trainer, Founder & CEO

December 2, 20110Comments

Registered Rep Interview on Economic vs Accounting Earnings

David A. Geracioti, Editor-In-Chief of Registered Rep magazine, recently invited me for an interview on why economic earnings matter when selecting stocks, mutual funds and ETFs.

by David Trainer, Founder & CEO

October 6, 20100Comments

Apologies for formatting issues – we will be back soon

I apologize for the formatting problems with the blog. We are working on getting it fixed as quickly as we can. All of the content is still here - just a little harder to find. Thank you for your patience.

by David Trainer, Founder & CEO

August 5, 201018Comments

Economic Versus Accounting Earnings

Accounting data was not designed for equity investors, but for debt investors. "Earnings, earnings per share and earnings growth are misleading measures of corporate performance."(from page 66 in The Quest For Value by Bennett Stewart, Harper Collins 1991.)

by David Trainer, Founder & CEO

June 7, 20100Comments

Investing vs Speculating

The difference between Investing and Speculating is much larger than Wall Street would have you believe. In fact, they could not be too more different activities. Speculating is gambling. Investing is intelligent decision-making.

by David Trainer, Founder & CEO

May 19, 20102Comments

How to Make Money Picking Stocks

The best strategy for making money in stocks is "buy low expectations & sell high expectations." Sounds easy — but if it was easy, everyone would do it, right?

by David Trainer, Founder & CEO

May 19, 20105Comments

Investment Strategy 101

The key to successful investing is maximizing upside potential and minimizing downside potential for every investment decision.

by David Trainer, Founder & CEO

May 19, 20100Comments

Valuation 101

There is only one true way to value stocks (or any financial assets) - as has been stated by the top investing minds over the ages:

by David Trainer, Founder & CEO

May 13, 201010Comments

Finance 101

Finance is the process for making accounting data useful. Per Accounting 101: accounting data by itself is not useful. Think of accounting data as the words used in the language of Finance. Just as with any language, words can be arranged to convey almost any meaning.

by David Trainer, Founder & CEO

May 13, 20102Comments

Accounting 101

Accounting data is NOT reliable for making investment decisions because:

by David Trainer, Founder & CEO

April 2, 20100Comments

Why I Created This Blog

This blog will show how to: 1. Uncover the unadulterated facts about corporate profitability and valuation. 2. Avoid falling prey to misinformation about stocks that inundates the airwaves, papers and most research channels. 3. Develop intelligent investment strategies.

by David Trainer, Founder & CEO

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