Theory of Investing

22 Things you could do, to become a better investor

2012-08-27 07:08 -  , Value Investing

How can I become a better investor? I think all of us think about that sometimes. First I must admit: I have no definitive answer to this question. But I thought about this quite often myself. Today I will share some ideas with you, that could make you a better investor. These ideas may only be small things. But I hope they deliver some good ideas.

4 mistakes when valuing companies with large cash holdings - and how to avoid them

2012-08-20 06:52 -  , Value Investing

Valuation of Cash Holdings

There exist various companies, that hold sizeable amounts of cash. I am sure you have at least some examples in your mind soon.

How to value those companies?

Value, Contrarian and Turnaround Investing - where to draw the line?

2012-07-23 07:40 -  , Value Investing

Value Investor, Contrarian Investor and Turnaround Investor

A Reader of my german blog posted a comment some time ago.

Where do you draw the line between Value, Contrarian and Turnaround Investing?

Today I will try to give an answer to this question.

Can a negative Return on Invested Capital (ROIC) be a good thing?

2012-07-09 07:38 -  , Value Investing

Can a negative ROIC be a good thing?

Can a negative Return in Invested Capital (ROIC) be a good thing? This question is asked on, an Indian Value-Blog. Here is the article.

The Return on Invested Capital (ROIC) is calculated as follows:

4 ways to find undervalued stocks - which one is best?

2012-07-07 08:38 -  , Value Investing

How to find undervalued stocks?

How to find undervalued stocks? In my home country germany there are more than 1000 individual stocks you can buy. Internationally, the choice is nearly infinite. How can you manage it, to find the best and the cheapest stocks out of this huge number of possibilities?
Let’s look at some possible ways, to find undervalued stocks, together with their pros and cons.