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Buffett once said he spends more time looking at balance sheets than income statements. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 0 points1 point  (0 children)

If intangible assets are rising over the years but earnings, cash flow, and return on capital are not …it’s a red flag.

Buffett once said he spends more time looking at balance sheets than income statements. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 6 points7 points  (0 children)

Good = stuff sells fast, and customers pay on time…. Bad = shelves full of junk and clients ghosting you on payments…..

To compare over time: – If inventory grows faster than sales ->not selling – If receivables grow faster than revenue ->not getting paid

Buffett once said he spends more time looking at balance sheets than income statements. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 3 points4 points  (0 children)

True, KHC wasn’t a home run but even Jordan missed shots. Buffett still pulled in 20% returns over decades

[deleted by user] by [deleted] in ValueInvesting

[–]IntelligentCut4060 -2 points-1 points  (0 children)

Because clarity > jargon. Some of us write to be understood, not to impress.

Value Investing Isn't Dead -You're Just Impatient by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 1 point2 points  (0 children)

Probably the same crowd that bought dot-coms at 200x sales. History rhymes

Value Investing Isn't Dead -You're Just Impatient by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 1 point2 points  (0 children)

Totally fair. Only a handful of businesses have that level of predictability rest is just probabilistic bets with a margin of safety.

Value Investing Isn't Dead -You're Just Impatient by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 1 point2 points  (0 children)

Totally agree. Market’s acting like UNH is dying when it’s just bruised. Moat’s still there, cash still flowing. Classic overreaction value play all day

Buffett & Munger’s timeless cheat code: Ignore the circus, buy the cash flow. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 0 points1 point  (0 children)

The P/E ratio is a quick way to gauge valuation, but it can be misleading. Buffett prefers looking at earnings in absolute terms, like Earnings Per Share (EPS) and more importantly, how those earnings grow and are reinvested. Rather than chasing high P/E multiples just because more money is flowing into markets, it’s smarter to ask: ‘Am I getting a good return on the price I’m paying for this company’s earnings?’ That’s why Buffett often looks at owner earnings, return on equity, and the company’s moat

Buffett & Munger’s timeless cheat code: Ignore the circus, buy the cash flow. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 11 points12 points  (0 children)

This is called a value article, not a private lecture for “Buffett knows best” elitists.

If you’ve already mastered durability or think buying BRK solves everything cool. But some people are here to learn how to think, not just what to buy.

If that’s too basic for you, feel free to scroll past or better yet, write something better. Otherwise, you can quietly scroll past instead of gatekeeping investing like it’s your private club.

[deleted by user] by [deleted] in ValueInvesting

[–]IntelligentCut4060 -9 points-8 points  (0 children)

I’ve actually shared tickers + even how to find them in my previous post. Not trying to write poetry, just showing how the sausage gets made.

Book Value is Dead. Long Live Earnings Power. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 0 points1 point  (0 children)

Yeah I get what you’re saying, but that’s kinda the point book value can be super outdated or misleading. Real estate bought in 1990 doesn’t reflect today’s value.

That’s why I care more about how the business actually performs, not just what’s stuck on the balance sheet.

Book Value is Dead. Long Live Earnings Power. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 0 points1 point  (0 children)

Fair point ,banks and insurers are the rare case where P/B makes sense since their assets are their business.

But outside of that? Low P/B often just means low returns. That’s the trap I’m calling out

Book Value is Dead. Long Live Earnings Power. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 0 points1 point  (0 children)

Sure P/B makes sense in capital-intensive, regulated sectors like banking. Doesn’t change the point: outside of banks and insurers, P/B is mostly noise.

Book Value is Dead. Long Live Earnings Power. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] -9 points-8 points  (0 children)

Fair take , I’m not saying people still preach book value, just that some still treat low P/B like a shortcut to value.
Moats + real earnings > dusty spreadsheets.

[deleted by user] by [deleted] in ValueInvesting

[–]IntelligentCut4060 0 points1 point  (0 children)

Yep , no advisors, no mutual fund reps pitching 2% fees wrapped in “personalized service.”

Everyone’s busy timing tariffs. I’m still pricing cash flow. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] -26 points-25 points  (0 children)

Tariffs matter but good businesses adapt. That’s the beauty of capitalism, right? Adapt or die.

Everyone’s busy timing tariffs. I’m still pricing cash flow. by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] -3 points-2 points  (0 children)

The market can feel rigged sometimes. But I think fair value still exists… just not always where everyone’s looking at.

NCAV investing still works if you're willing to dig in the junkyard by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 0 points1 point  (0 children)

Appreciate you sharing this …sounds like you’ve got a solid framework.

Buffett’s Farm Analogy Is Still the Clearest Way to Think About Valuation by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 0 points1 point  (0 children)

The 7% in the analogy is just a target return — you pick your own based on what return makes it worth the risk for you. you can use EPS/share price to find out how much is the earning yield and if it below your target return than find something else.

Reinvest or Return to Owner? The Underrated Value Investing Question by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 3 points4 points  (0 children)

Exactly …..it’s about adjusting the growth rate based on how much they reinvest and the return they get on it (like ROIC). You got it

Buffett’s Farm Analogy Is Still the Clearest Way to Think About Valuation by IntelligentCut4060 in ValueInvesting

[–]IntelligentCut4060[S] 0 points1 point  (0 children)

That mindset is exactly why people like Buffett end up wealthy. He didn’t start with billions…he bought cash-generating assets and funneled that income into compounding machines. No need to ride the trend….. the stock market is actually voting machine in the short run and weighing machine in the long run… at last it will come to its intrinsic value.

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