Thank you for writing this absolutely fantastic article!
Last night, I shared your website with my teenage son, and told him to read every single piece you had posted. I think you should be teaching this in university! Seriously!
So helpful! I’m finding all your post very insightful. I’m a college student in Louisville, KY about to graduate. Could write about some of your career advice in finance?
As a new subscriber I'm catching up on a lot of awesome articles, they're all awesome! One thing here that I still wanted to clarify a bit: you say that you should not overpay and try to buy stocks at a discount. However, since I'm a long term investor, and in the long term earnings growth matters much more, should I really care that I don't buy at a discount or even overpay a little bit? Suppose I buy at a p/e of 30 and it might go to 20 in 10 years, but yearly earnings growth is 15% average. In such a case the 3% contraction will still leave me with a return of 12%, not even including dividends/buybacks. Of course it's still better to buy at a discount but sometimes you don't want to wait for the price to be at a discount?
Hey James! Thanks a lot for this awesome write up. Super helpful. Btw can you share some resources, that you found to be the most reliable, for a beginner who wishes to learn in depth about valuation? Thanks
Have been considerably discouraged .... My dialogue with you you has been compromised ... Sorry ... Would be my greatest wish to know that I have consulted with a extremely blessed investor like you .... Please ... If GOD LIVES IN .... corybattcorp@yahoo.com .... I believe in you
In the formula, Your expected yearly return = FCF per share growth + shareholder yield +/- multiple expansion (multiple contraction), I have a question about the FCF per share growth.
Is this the FCF after paying dividends and buybacks? I mean, since dividends and buybacks come out of FCF, it would seem like you're counting them twice, which would obviously not make sense and I'm sure is not what is meant. So, can you please clarify what you mean by FCF? Thank you!
Hi CQ, thanks for the article. I have a question: If FCF yield is the preferred metric, then why does the PEG ratio use the EPS growth in the denominator? Wouldn't it be better to use FCF growth per year rather than EPS growth per year?
This is everything I've been wanting to learn, simplified and written with great clarity. Thank you very much, Compounding Quality!
Loved this write-up. Really good information!
Thank you for another insightful gem! Very clear and easy to understand. I always learn something new that I can act on. Please keep it up.
Thank you for writing this absolutely fantastic article!
Last night, I shared your website with my teenage son, and told him to read every single piece you had posted. I think you should be teaching this in university! Seriously!
Great post! In the formulate to be printed and looked at often, shouldn't it be the shareholder yield? It states buyback yield at the moment.
So helpful! I’m finding all your post very insightful. I’m a college student in Louisville, KY about to graduate. Could write about some of your career advice in finance?
This is pure gold !!
Thanks, amazing article - What screeners do you recommend to filter the stock universe?
Thanks in advance
CA
As a new subscriber I'm catching up on a lot of awesome articles, they're all awesome! One thing here that I still wanted to clarify a bit: you say that you should not overpay and try to buy stocks at a discount. However, since I'm a long term investor, and in the long term earnings growth matters much more, should I really care that I don't buy at a discount or even overpay a little bit? Suppose I buy at a p/e of 30 and it might go to 20 in 10 years, but yearly earnings growth is 15% average. In such a case the 3% contraction will still leave me with a return of 12%, not even including dividends/buybacks. Of course it's still better to buy at a discount but sometimes you don't want to wait for the price to be at a discount?
I want to greet you from the bottom of my heart
Pleased the way you explained everything with ease and simplicity amazing !
Hey James! Thanks a lot for this awesome write up. Super helpful. Btw can you share some resources, that you found to be the most reliable, for a beginner who wishes to learn in depth about valuation? Thanks
Another winner write-up. Thanks, CQ!
Have been considerably discouraged .... My dialogue with you you has been compromised ... Sorry ... Would be my greatest wish to know that I have consulted with a extremely blessed investor like you .... Please ... If GOD LIVES IN .... corybattcorp@yahoo.com .... I believe in you
In the formula, Your expected yearly return = FCF per share growth + shareholder yield +/- multiple expansion (multiple contraction), I have a question about the FCF per share growth.
Is this the FCF after paying dividends and buybacks? I mean, since dividends and buybacks come out of FCF, it would seem like you're counting them twice, which would obviously not make sense and I'm sure is not what is meant. So, can you please clarify what you mean by FCF? Thank you!
Hi CQ, thanks for the article. I have a question: If FCF yield is the preferred metric, then why does the PEG ratio use the EPS growth in the denominator? Wouldn't it be better to use FCF growth per year rather than EPS growth per year?