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Value Theory

I dissect the stock holdings, investing techniques and stories from the world's greatest investors. Like, Buffett, Munger, Dalio, Marks, Klarman and more. Subscribe to my newsletter to receive actionable insights and improve your investing skills.

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How I Made a 65% Gain in just 3 Weeks

I recently bought then sold a stock 3 weeks later for a 65% gain. The stock was Gullewa Limited (ASX:GUL). Here I will tell you why I bought and sold it. Gullewa Limited, established in 1953 and headquartered in Sydney, Australia, operates as a diversified investment holding company. Its primary activities are: Mineral Exploration & Royalties: GUL is engaged in the exploration and evaluation of mineral properties, particularly gold and base metals. The company holds a 1% royalty interest in...

Hi Reader In weeks email I'll look at Adobe which is currently trading at a 52-week low of $367.25, down from its 52-week high of $586.55 Growth If you want long term growth in a stock's share price you need long term growth in the company. Over the past 5 years Adobe has grown revenue from $12b to $22b and normalized net income from $2.2b to $5.1b. But if we look at the year over year (YoY) growth rates we can see that growth has slowed over the past 5 years. Revenues grew at an average of...

Hi Reader This is a new email format where I'll look at a stock that is at, or near its 52-week low. I'll aim to analyze why the stock is down and if it is potentially undervalued. In this week's email I'll be looking at Nike (NKE) Nike is currently trading at $63.56. Slightly above the 52-week low, and down from its 52-week high ($95.77). Nike reached an all-time high ($169.3) in November 2021 and has been on a steady decline since then. Let's look at why that might be. Growth If you want...

Warren Buffett has always emphasized that great businesses start with great management. But what exactly makes a management team exceptional? Is it innovation, leadership, or aggressive expansion? While these traits can be valuable, Buffett takes a different approach—he focuses on how management thinks and makes decisions, especially when it comes to capital allocation. For Buffett, the best managers exhibit three key traits: They make rational decisions – particularly when it comes to...

Read time: 5 mins For years, I struggled with how to approach the stock market. Every flashy stock tip, hyped-up IPO, or headline-grabbing article would catch my attention, and I’d jump in without truly understanding what I was investing in. It was frustrating and, frankly, unprofitable. Then I discovered Warren Buffett’s approach, and it completely transformed how I think about stocks. Buffett doesn’t chase trends or gamble on the unknown. His strategy boils down to three timeless...

There’s no question that Warren Buffett is one of, if not the greatest investor the world has ever seen. But how did he develop his unique investment philosophy? Who influenced his way of thinking about stocks and businesses? In this email, you’ll learn about the 3 key investors who shaped Buffett’s philosophy and the invaluable lessons they taught him. 1. Benjamin Graham: The Father of Value Investing Benjamin Graham earned his title because he revolutionized security analysis, creating a...

Understanding how to read a balance sheet is critical for successful investing. In this video you'll learn: 1) what a balance sheet is 2) the key things I look for 3) and things that turn me off a stock

The income statement is important because it shows how much money a business makes and spends over a certain time. It helps people see if the business is earning a profit or losing money. This information is useful for making decisions, like figuring out how to save money or grow the business. Investors and banks also use it to decide if they want to support the business. Overall, the income statement helps everyone understand how well a business is doing and where it can improve. In this...

Financial Statements Explained Financial statements are important for understanding how well a business is doing. They show key details about a company’s profits, assets, and cash flow over a certain period. The main financial statements—income statement, balance sheet, and cash flow statement—help investors, creditors, managers, and regulators make smart decisions. These documents show if the business is making money, if it can pay its bills, and how efficiently it’s operating. They also...

Hello Reader, Valuation Ratios help you determine the value of a stock. Something that is critical to being a successful investor. In this video I’ll teach you about 6 valuation ratios how to calculate them and what they tell you about a stock we’ll then calculate them for Nike in excel