Using the Earnings Yield as a Simple Valuation Screening Technique

earnings yield as a stock screenerOne of the reasons posts have been few and far between since the fall is that I have been transitioning the cash flow from debt repayment to savings and investments. If I wasn’t that interested in the art and science of investing, I would have picked 2 Vanguard ETFs, done regular dollar cost averaging over the next umpteen years, and called it a day (this is something I think most people should do as they will have no further interest in analyzing investments). However, I have an obsessive level of interest and curiosity in businesses and want to figure out the most optimal way to invest in businesses. Thus, a lot of time was (and still is) spent gaining knowledge. Let’s talk about one metric I use to screen potential investments: the earnings yield.

Continue reading

How Intelligence Increases Wipe Out Risk

gt advanced technologies abcChills ran down my spine. I had just finished reading about investors losing their entire life savings. These people had doubled down and wagered everything on a single company. A single stock. And they lost everything. This is a fascinating read. As I sifted through the carcass of an online trading forum where this drama played out over 500+ pages, I couldn’t help but notice the story and the lessons that unfolded as the days went by. The company was GT Advanced Technologies.

Continue reading